Major players in the global cryptocurrency community have considered new bills from the European Commission for digital assets. The International Association of Trusted Blockchain Applications (INATBA) published the first response to the Crypto Asset Market Rules (MiCA) proposed by the European Commission. The association includes big crypto companies like Ripple, ConsenSys, and Iota.

In their official response to the European Community, INATBA members voiced industry concerns about the proposed MiCA rules, and called on the authorities to join efforts to develop further acquisitions. While INATBA generally views MiCA as a positive step towards clarity in regulation, many of its members have identified a number of key challenges.

For example, they argue that MiCA in its current form could “burden a young and innovative industry with costly and complex regulatory requirements not commensurate with its policy objectives”. The association expressed its hope that the European Commission would take support measures to ensure that MiCA does not suppress innovation in the European Union or force EU companies to flee to countries outside the European Union.

As part of the response, the institute also emphasized that the proposed legislation in its current form could negatively impact some new industries such as decentralized finance or DeFi. “Some analyzes indicate that early and emerging markets such as decentralized financing are unlikely to be available to Europe and its citizens under the proposed regulation,” the institute said in a statement.

MiCA regulations were officially unveiled on September 24, and are part of a new EU digital financing package awaiting review by EU legislators. In accordance with Global Digital Asset Policy and Regulatory Advisor XReg Consulting, MiCA will be directly implemented across the EEA without the need for national legislation once it is adopted.

In its MiCA CV, XReg expressed confidence that the new legislation will have a significant impact not only on the European Economic Area, but on the world. Nathan Catania, partner at XReg Consulting, told Cointelegraph he expects the new legislation to take several years to complete.

INATBA was established with the support of the European Union in April 2020 and has more than 100 members, including technology giant IBM, consulting giant Accenture and Deutsche Telekom.

Source: CoinTelegraph