Thursday, November 26, 2020
Home Cointelegraph News Blockchain industry raises concerns over EC’s proposed crypto regulations

Blockchain industry raises concerns over EC’s proposed crypto regulations

Major players in the global cryptocurrency community have addressed the European Commission’s new legislative proposals on digital assets. The International Association for Trusted Blockchain Applications, or INATBA, has released an initial response to the Markets in Crypto-Assets (MiCA) regulations proposed by the EC. The association features major crypto companies like Ripple, ConsenSys, and Iota.

In its official response to the EC, the INATBA members expressed the industry’s concerns over the proposed MiCA regulations, calling the authority to bring their forces together in further development of the regulatory framework. While the INATBA generally sees the MiCA as a positive step that aims to establish regulatory clarity, some of its members outlined a number of significant concerns.

For example, they claim that in its present form, the MiCA could “overburden a young and innovative industry with costly and complex compliance and legal requirements that are disproportionate to the policy objectives it pursues.” The association expressed hope that the EC will provide supportive measures to ensure that the MiCA does not stifle innovation within the European Union and cause the EU-based firms to flee to non-EU countries.

As part of the response, the INATBA also underlined that the proposed legislation in its current form could negatively impact some emerging industry sectors like Decentralized Finance, or DeFi. “Certain analyses suggest that, under the proposed regulation, novel and early-stage developing markets such as Decentralised Finance would likely no longer be accessible to Europe and her citizens,” the INATBA’s statement reads.

Officially introduced on Sept. 24, MiCA regulations are part of the EC’s new digital finance package that is subject to consideration by the EC’s legislative counterparts. According to global digital asset policy and regulatory adviser XReg Consulting, MiCA will be directly applicable throughout the EEA without the need for national legislation once adopted.

In its summary to MiCA, XReg expressed confidence that the new legislation will have a profound impact not only on the European Economic Area, but on the entire world. Nathan Catania, a partner at XReg Consulting, told Cointelegraph that he expects the adoption of the new legislation to take a few years.

Established with the EC’s support in April 2020, the INATBA has more than 100 members including tech giant IBM, consulting giant Accenture, and Deutsche Telekom.

Popular Articles

Oracle Exploit Sees $100 Million Liquidated on Compound

More than $100 million was liquidated on lending platform Compound in the last 24 hours, according to LoanScan. This includes the third largest COMP...

FTX launches spot margin trading after UI lag fuels liquidations

Popular crypto-derivatives exchange FTX was in the crosshairs earlier today after UI outages contributed to severe consequences for a few traders in the market. According...

Finance Redefined: DeFi gets its first merger after a devastating hack, Nov. 18-25

Finance Redefined is Cointelegraph's weekly DeFi-centric newsletter, delivered to subscribers every Wednesday. On Saturday, we saw one of the most complex smart contract hacks so...

Former Microsoft Engineer Says Nigerian Expatriates Are Using Bitcoin to Circumvent Country’s Overvalued Exchange Rate

A former Microsoft software engineer and co-founder of Buycoins Africa Tomiwa Lasebikan says some Nigerians expatriates are now using bitcoin to circumvent the country’s...

BTC dumps as Coinbase CEO mentions US regulations for crypto wallets

Veterans will say it’s the same story in a different dress. Bitcoin has, historically, been met by regulatory “FUD” or the prospects of a...

Yearn Finance announces another ‘merger’ with the Cream lending protocol

Two days after Yearn Finance (YFI) and Pickle Finance joined forces in DeFi’s first effective merger, Yearn founder Andre Cronje published details of another...