European Union officials recently agreed on a landmark law called the Crypto Asset Markets (MiCa) framework that provides guidance for crypto asset service providers (CASPs) to operate in the Europe region.. Following this, the experts reacted with various opinions, from support for the decision to the explanation of how it would have adverse effects.
According to Richard Gardner, CEO of the commercial technology company Modulus, the new development provides a clearer picture for CASPs as to what authorities expect. Gardner explained that:
“Not everything in it is going to be to everyone’s liking, but right now the industry just needs to understand what’s expected of it. It’s about time we had some guidance so operators can act with intent.”
Gardner also added that this may put an end to the decline in digital assets and allow the sector to expand and innovate. The executive believes that the laws were “constructed to protect against abuse and manipulation.”
Commenting on the issue, Petr Kozyakov, CEO of payment infrastructure company Mercuryo also praised the move and believes it is a “welcome step in the right direction.” Kozyakov noted that this can weed out bad actors. He said:
“There is a real desire for a clear set of rules to protect individuals and businesses that have already adopted crypto, to weed out bad actors, and to encourage others to adopt crypto as a result.”
Kozyakov added that the new development may “unlock the potential” of the sector and push it towards mainstream adoption.
Meanwhile, not everyone believe that the new development of EU regulations will have positive effects in the region. Seth Hertlein, global policy officer at wallet company Ledger, noted that the European Union has missed the opportunity to regain the market share it lost in Web2 by developing Web3. Hertlein also stressed that the regulations would violate the fundamental rights of Europeans.
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