Markets in Crypto Assets (MiCA) legislation from the EU may become the norm on a worldwide scale.
The European Parliament has finally approved MiCA, and it will have an effect on centralized crypto exchanges running in the EU. It may have an impact on crypto laws elsewhere as well.
Regulations from the EU may have an impact throughout the globe as a trade union that together represents one of the biggest economies in the world. Where the EU goes, others frequently follow, whether it is in terms of data privacy or the structure of modern antitrust rules.
From a commercial standpoint, the European Union frequently sets greater criteria than other nations. Additionally, because the EU is such a sizable market, regulations there may serve as a global benchmark for major international corporations. Why, after all, make the effort to comply with EU legislation just to implement diverse compliance requirements elsewhere?
Before MiCA, anti-money laundering (AML) laws were used to regulate cryptocurrencies in the EU. Playing by the norms set out by the EU is essential for its trade partners when it comes to AML laws.
Since Brexit, for instance, AML regulations in the UK have remained largely in line with EU standards. Regulators in Europe have similar goals on that front.
Naturally, the UK has not chosen to adopt a specific MiCA-style structure for cryptocurrency regulation. But the two jurisdictions continue to agree on the essential ideas. An approach that regards the sector as a subset of the larger financial services business has been embraced by both the EU and the UK.
Following a meeting this week with Andrew Griffith and the UK Economic Secretary, Coinbase CEO Brian Armstrong tweeted in favor of the British strategy. He said that the nation is moving quickly toward proper cryptocurrency legislation. Coinbase also just released a blog post with suggestions for how the UK may develop into a “Web3 Innovation Hub.”
In a different article, the site referred to the passing of MiCA as “a pivotal moment for crypto in the region.” The efforts of European policymakers should be held up as a model for others, it was said.
Other cryptocurrency exchanges’ responses reflected similar thoughts.
According to Mark Jennings, Head of European Operations at Kraken, MiCA may soon become a global standard for client safety and operational effectiveness.
Changpeng Zhao, CEO of Binance, said that the rule generally represents:
“a pragmatic solution to the challenges we collectively face.”
The change in Coinbase’s emphasis on the other side of the Atlantic reveals a murky regulatory landscape in the US. The expansion of crypto firms there is potentially threatened by this.
Armstrong had a meeting with the Securities and Exchange Commission (SEC) on Friday in Washington. He stated that Coinbase is working to establish clear regulations for the cryptocurrency industry.
He emphasized that the United States cannot afford to lag behind in this crucial technology and that regulations must be established before they can be put into effect.
Businesses are becoming increasingly frustrated at the U.S. government’s inability to provide a solution, and as a result, crypto investment is shifting to Asia.
A $100 million innovation fund for the area was unveiled by cryptocurrency trading platform Bitget on April 10. Similarly, in March, Hong Kong investment company ProDigital Futures disclosed plans to invest $100 million in businesses in Asia with a focus on cryptocurrencies.