The blockchain association INATBA responds to the regulatory proposals of the EU Commission and expresses praise and concerns.
The crypto industry has responded to the European Commission’s recent proposal to regulate cryptocurrencies and blockchain
Accordingly, the International Association for Trusted Blockchain Applications (INATBA), i.e. the international association of blockchain projects, has published an official statement on the Commission’s regulatory proposals called “Markets in Crypto Assets” (MiCA) . Well-known companies from the crypto industry are represented in the association , including Ripple, ConsenSys and Iota.
The official statement shows that the members of INATBA have major concerns about the MiCA proposals of the EU Commission. Therefore, the association calls on the highest European executive body to jointly coordinate all further efforts in relation to the regulation of cryptocurrencies. Although INATBA assesses the MiCA proposals as a step in the right direction, which will provide more legal clarity in the industry, some members have clear reservations.
One of the points of criticism is, for example, that the MiCA “could overwhelm a young and innovative industry with the costly and complex compliance with legal regulations”, and that this would be out of proportion to the goals pursued by any legislation. However, the association is confident that the Commission will take appropriate measures to ensure that MiCA does not impede innovation and prevent crypto companies from migrating from countries in the European Union.
In this regard, the INATBA states that the proposed regulation could have negative effects on emerging fields of the crypto industry such as decentralized finance ( DeFi )
It says: “Research suggests that under the proposed regulation, new and emerging markets such as decentralized finance could no longer exist in Europe or that EU citizens could no longer use them,”
The MiCA regulation proposals were presented by the EU Commission on September 24th and are part of a new package for the digitization of the financial sector in the Union. The Council of Europe and the European Parliament must first discuss the new drafts before they can be passed. According to the political consultancy XReg Consulting , MiCA would automatically also be valid for the entire European Economic Area (EEA).
In summary, the XReg is confident that the new regulatory proposals will have far-reaching effects not only on the European Economic Area, but even the whole world. Nathan Catania, one of the owners of XReg Consulting, told Cointelegraph that it could take several years to implement the proposed guidelines.
The INATBA was established in April 2020 with support from the European Commission launched and is now one of more than 100 members, including major players like IBM, Accenture and the German Telekom.