European Union officials recently approved a landmark law called the Markets in Crypto Assets (MiCa) Framework that provides guidelines for crypto asset service providers (CASPs) to operate within the Europe region. After that, experts reacted with mixed opinions, from supporting the decision to explaining how it would have harmful effects.
According to Richard Gardner, CEO of commercial technology company Modulus, the new development provides a clearer picture for CASPs in terms of what authorities expect. Gardner explained that:
“It is not going to appeal to all players, but at this point the industry just needs to understand what is expected of it. It is time to prepare a guide so that operators can act with intent.”
Gardner also added that this could end the decline of digital assets and give the industry a way to expand and innovate. The executive believes that laws are “built to protect against abuse and manipulation.”
Commenting on the matter, Peter Koziakov, CEO of payment infrastructure company Mercurio, praised the move and believed it was a “welcome step in the right direction”. This could eliminate bad actors, Kozyakov noted. He said:
“There is a real desire to establish a clear set of rules to protect individuals and companies who have already adopted cryptocurrency, to weed out bad actors, and encourage others to adopt crypto as a result.”
Koziakov added that the new development could “unleash the potential” of the sector and push it towards mainstream adoption.
Related: Coinbase Seeks Strong European Expansion Amid Crypto Winter
Meanwhile, not everyone believes that the new development in EU regulations will bring positive effects within the region. Seth Hertlein, global head of policy at wallet firm Ledger, noted that the European Union has lost an opportunity to regain the market share it lost in Web2 through developments in Web3. Herlin also highlighted that the rules would be a violation of the basic rights of Europeans.