Six months after its first response to the European Commission’s crypto legislative proposal, the International Association for Trusted Blockchain Applications (INATBA) has published a detailed report on key issues related to the proposed regulations.
According to the recently published document, INATBA argued that the Commission Markets in crypto assets Regulations do not favor emerging cryptocurrency and blockchain companies. Instead, the blockchain group, backed by Ripple and ConsenSys, argued that the EC legislative proposal offers incumbents in the existing financial ecosystem a significant advantage.
Indeed, this criticism is widespread among crypto and blockchain stakeholders in countries advocating a more regulated regulatory infrastructure for digital assets. This contradiction often revolves around the cost of regulatory compliance associated with the extensive financial and customer disclosure regulations required by regulators.
As previously reported by Cointelegraph, MiCA is part of the European Commission’s digital finance overhaul. MiCA, while still theoretical, can be applicable across the European Economic Area if approved without the need for individual national ratification.
The INATBA document also highlighted some shortcomings in the proposed MiCA rules related to the decentralized financial industry. According to the report, the MiCA regulatory framework does not sufficiently facilitate niche crypto markets like DeFi.
INATBA’s conclusions were drawn from surveys and discussions with participants in the crypto industry. According to INATBA, the purpose of these surveys was to measure the level of regulatory awareness among crypto and blockchain participants.
The results suggest that 90% of respondents are sufficiently informed about MiCA. However, other control questions in the survey indicated that the same respondents had not consulted with regulatory and policy experts on the matter. For INATBA, this inequality could indicate that industry stakeholders may not be aware of important aspects of the MiCA framework. They added:
“We can assume that some of the subtleties of the MiCA have remained hidden from the respondents who have no regulatory background. This was also evident during the stakeholder engagement sessions, where many participants asked questions and clarified about certain provisions of the MiCA. “
However, the majority of participants agreed that the MiCA would bring legal certainty to the European digital asset area. Indeed, if approved, the regulatory framework could make it easier for crypto companies to operate across the European Union and likely end arbitrage across the EU.
As part of its conclusion, INATBA called for greater engagement between EU policymakers and digital asset stakeholders in the development of MiCA.