Six months after its first response to the European Commission’s proposal to legislate cryptography, the International Trusted Blockchain Applications Association, or INATBA, released a report detailing key issues related to the planned regulations.

According to a recently released document, INATBA said the cryptocurrency market commission rules are not favorable for new cryptocurrency and blockchain companies. Instead, a blockchain group backed by Ripple and ConsenSys said the EU’s legislative proposal brings significant benefits to companies based in the legacy economic ecosystem.

In fact, this critique is spreading among cryptocurrency and blockchain stakeholders in jurisdictions seeking a more regulated regulatory infrastructure for digital assets. This objection often relates to compliance costs associated with financial regulations and comprehensive customer information required by regulatory agencies.

As Cointelegraph previously reported, MiCA is part of the European Commission’s digital finance governance. While still in theory, MiCA could be beneficial to the entire European Economic Area if approved, without requiring separate national certification.

The INATBA document also points out some shortcomings of the proposed MiCA rules for the decentralized financial field. According to the report, MiCA’s rules are not sufficiently preparing the krypton markets like DeFi.

INATBA’s conclusions were drawn from surveys and collaborations with crypto industry participants. According to INATBA, the purpose of these surveys was to measure the level of organizational awareness among participants in cryptography and the blockchain.

The results showed that 90% of the respondents complained that they were sufficiently familiar with MiCA. However, other voting observation issues indicated that the same participants had not yet consulted with regulatory and policy experts on the issue. For INATBA, this difference may indicate that industry stakeholders may not be aware of important aspects of the MiCA structure. They added:

“It can be assumed that some of the intricacies of MiCA could have been hidden from respondents without legal education. This was further illustrated during the stakeholder engagement sessions, where many participants posed questions and made specific judgments about MiCA.”
However, most of the participants agreed that MiCA will bring legal certainty to the European digital real estate sector. Indeed, if the rules are approved, they could make it easier for cryptocurrencies to operate in the European Union and likely end EU regulatory arbitration.

In conclusion, INATBA called for a more active engagement between EU policymakers and digital asset stakeholders in the development of MiCA.

Source: CoinTelegraph

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