The International Association for Trusted Blockchain Applications (INATBA) is concerned about the latest Markets in Crypto-assets (MiCA) regulations imposed by the European Commission. The new framework might overburden the industry and therefore slow down its growth.
In an official response to the EC MiCA framework, INATBA provided an analysis of the regulation and highlighted the most important points of concern related to potential complications that might be caused by the framework implementation.
Bringing regulatory clarity to the nascent blockchain and cryptocurrency industry is highly important, so INATBA agrees that it is generally a very positive move. However, the present framework is too complicated as compared to the goals it pursues. Consequently, complex procedures might scare off potential players from the industry or take too much time from their operation.
INATBA further stresses that the neutrality of the framework is questionable as it gives preference to certain kinds of businesses over others. In that case, some players like Crypto Asset Service Providers (CASP) might be left behind. Besides, these regulations might deprive European citizens of access to some innovative developing technologies like Decentralized Finance.
As CoinIdol, a world blockchain news outlet, has previously reported, the European Commission announced the MiCA regulations on September 24. It is the first regulatory framework of the kind presented by the Commission and aimed at bringing some clarity to the industry.
Admitting that proper regulations are necessary for the industry to grow and develop in accordance with the law, INATBA suggested to initiate further collaboration to improve the framework and make it not only clear and exhaustive but also effective. As the Association believes it should benefit the blockchain and cryptocurrency industry instead of slowing it down, it is willing to make all efforts for collectively improving and fixing its flaws.