In a recent statement, he said that members of the European Parliament will soon “vote to adopt the regulation on markets in crypto-assets (MiCA)”. The proposed rules are expected to provide “legal certainty for crypto-assets not covered by existing EU legislation,” according to the parliamentary body’s think tank. Cryptocurrency consultant Paulius Vaitkevicius said any regulation of cryptocurrency would result in more capital and talent coming into the space.
“Harmonized Rules” for Crypto Assets at EU Level
After months of discussions and negotiations, which culminated in an initial agreement on June 30, the European Parliament (EP) is now set to “vote on the adoption of the regulation on markets in crypto-assets (MiCA).” Voting is planned to be held at the plenary session of the legislative body. European leaders claim that the adoption of the MCA will “lead to the establishment of harmonized rules for crypto-assets. [the] At the EU level.”
Harmonized cryptocurrency rules are expected to provide “legal certainty for crypto-assets not covered by existing EU legislation,” according to a briefing by the parliamentary think tank on November 29. In the briefing, the AP also claims that the rules will not only strengthen consumer and investor protection, but also “encourage innovation and the use of crypto-assets.”
Through MICA, European authorities also hope to “regulate [the] issuance and trading of crypto-assets, as well as management of underlying assets.
There are also European leaders such as Christine Largade, President of the European Central Bank requires stricter regulation — MiCA II — some critics of the proposed legislation argue that the proposed rules in their current form could stifle innovation.
Legal Clarity Attracts Mature Players
Commenting on the European Union’s desire to regulate cryptocurrencies, Paulius Vaitkevicius, founder of law firm VILP Solutions and cryptocurrency consultant, said the prevailing “Wild West environment” is not beneficial for all parties. He also told Bitcoin.com News that without guidelines or regulatory frameworks, “and with a number of situations where industry players collapse, we could end up in a situation where there will be only a few investors left in the industry.”
Therefore, to prevent this from happening, the crypto industry, according to Vaitkevicius, “needs legal clarity that will bring.[s] more mature players are being introduced into the industry by both project and investors. Vaitkevicius explained why he favors deregulation of the industry, saying:
In my personal experience, such players have been looking for rules and clarity for some time and are waiting for the right moment to make the right move. With regulations, we will see these solid steps, resulting in additional capital and talent coming into the industrial space.
Meanwhile, some cryptocurrency opponents said Sam Bankman-Fried’s shenanigans would have been exposed earlier if proper regulatory frameworks were in place. However, when asked about the validity of this argument, Vaitkevicius said that the fact that, on paper, FTX itself is “one of the most regulated players in the industry” undermines this theory. He added:
“Regulation is a good step forward, but [this] It needs to be followed by other elements in order to be functional in real-life situations and to achieve the set goals.”
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