Last week the EU published its crypto-asset regulations, MiCA, following an earlier leak where we explored some of the legal details as has the European Parliament and Freshfields. MiCA received a mixed review from blockchain and distributed ledger technology (DLT) industry body INATBA, whose launch the European Commission hosted last year. The International Association of Trusted Blockchain Applications (INATBA) boasts both startups and numerous high profile members such as Accenture, ConsenSys, Deutsche Boerse, IBM, R3, Ripple, and SAP.
Despite the EU aiming to encourage innovation and provide greater legal certainty, some INATBA members have expressed concerns. Its members agree with the stated goals of MiCA. However, some are worried that in its current form, it might “overburden a young and innovative industry with costly and complex compliance and legal requirements that are disproportionate to the policy objectives it pursues.”
To provide legal certainty, the EU has clarified what activities fall into existing legislation. But it also means new regulations are needed for the gaps not covered by existing laws. If it doesn’t do these two things, then the clarity won’t be there. Hence the Catch 22.
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