The International Association of Trusted Blockchain Applications has recently issued its response to the publication of the draft Markets in Crypto Assets Regulation. A considered response, it highlights a number of issues it takes with the very substantial and thorough treatment of the crypto assets context in the draft regulation.
One of the key concerns it raises is the potential for such prescriptive regulation to stifle the development of the industry and to effectively close the door to Europe to much of the industry. Clearly, as a draft which will undergo substantial revision during consultation phases over the next couple of years, this is likely to change substantially. It is hoped that the very detailed tackling of industry issues might suffer a recalibration better suited to specific market needs and demands.
Gibraltar's regulatory environment, based on the application of nine principles as opposed to tightly drafted requirements, is the kind of environment where blockchain business can thrive - a proof of concept jurisdiction where, perhaps, EU-destined operations can start to develop and hone their product and organisations, ready for en entry into the EU market when MiCA becomes law? If you want to know how we can help you, get in touch and we'll show you how.
While the proposed regulation is well conceived, some members express concern that it could, in its present form, overburden a young and innovative industry with costly and complex compliance and legal requirements that are disproportionate to the policy objectives it pursues.