Europe's MiCA rollout sparks debate over who wins under new crypto rules
Key takeaways
- Executives and lawyers welcomed the single regulatory framework across the EU, but disagreed over whether MiCA creates a fair market.
- "I believe that regulating crypto on a European level is a very positive thing," said Joseph Borg, a Maltese lawyer and partner at WH Partners who has advised crypto firms since 2016.
- Borg, however, said the biggest challenge is no longer the law itself but how regulators are applying it.
Thousands of cryptocurrency service providers face suspension and were legally obligated to stop servicing customers in the EU as of midnight, June 30, leaving millions of European users hunting for a MiCA-approved platform.
Executives and lawyers welcomed the single regulatory framework across the EU, but disagreed over whether MiCA creates a fair market. Some said the cost of compliance has made it impossible for smaller firms to operate in the country, forcing them to look elsewhere, including Dubai. Others believe the rules rightfully benefit those crypto firms that invested in transparency. Another concern is whether regulators can prevent offshore firms from continuing to serve European customers without a license.
"I believe that regulating crypto on a European level is a very positive thing," said Joseph Borg, a Maltese lawyer and partner at WH Partners who has advised crypto firms since 2016. "Regulation is necessary."