Martin Bruncko the Executive Vice President of Binance gave his opinion on how the European Union’s Markets in Crypto Assets (MiCA) law could greatly benefit smaller crypto exchange platforms and new businesses.
Bruncko gave his statement in an interview at the recent Web Summit Conference held in Lisbon.
He believes introducing the MiCA could create a favorable environment for crypto exchange platforms across Europe. In the interview, Bruncko gave a brief background of how smaller crypto exchanges have evolved over the years in Europe and its impact on the regulatory environment.
Bruncko hinted that by creating a unified market, the MiCA would solve the problem of division in the European blockchain industry, which has invariably resulted in increased financial costs and time-consuming processes to ensure crypto exchanges are compliant with regulations in different regions.
Bruncko also believes that the MiCA will benefit cryptocurrency companies that are just starting up by allowing them to concentrate on growth rather than legal and compliance issues.
Regulatory Frameworks Boosting Safety in the Crypto Space
MiCA is a regulatory framework that contains numerous articles as well as a detailed plan for their implementation by various stakeholders of the European Union and member states. The first objective of this regulation is to ensure that there is a legal framework in the crypto asset market that exists within the European Union.
Another reason for creating the MiCA is to enforce adequate levels of consumer and investor protection and market integrity, given that crypto-assets, which are not covered by existing financial services legislation, pose many of the same threats as more known financial instruments. The regulation will also be used to maintain financial stability.
The MiCA was approved on the 5th of October after a letter was submitted to the Chair of the European Parliament’s Economic and Monetary Affairs Committee which is anticipated to take effect in 2024.
On the other side of things, the United States has also begun the process of ensuring that crypto assets are operated within specific regulations in compliance with an Executive Order issued by President Joe Biden earlier in March.
The crypto framework invites the agencies of the U.S. government to partner with their foreign counterparts to develop a unified crypto regulatory framework. According to the Treasury Department, will aid in avoiding blunders in fraudulent cases that spread overseas.
