According to a survey by INATBA, most cryptocurrency firms believe that the EU cryptocurrency regulation (MiCA) bill will hinder innovation, but reduce fraud.
The International Association for the Development of Trusted Blockchain Applications (INATBA) surveyed 44 CEOs of cryptocurrency firms and startups to find out their views on the MiCA bill. An unofficial version of the MiCA proposed by the European Commission hit the web last fall. The bill contains the rules for the issue and circulation of digital assets. Above all, it aims to protect users and investors. According to INATBA, many in the cryptocurrency industry fear that these rules will jeopardize Decentralized Finance (DeFi).
According to the published document, only 23% of those surveyed believe that MiCA will contribute to the development of DeFi, while 49% strongly disagree with this statement. The INATBA researchers added that given the nature of decentralized protocols, they would not be able to function in accordance with the provisions of the MiCA. The bill implies that the issuers of tokens must be registered as a legal entity, and therefore be easily identified. However, DeFi projects are deployed using smart contracts, making it difficult to identify token issuers.
At the same time, 70% of survey participants responded that cryptocurrency firms that will comply with the MiCA provisions will have a competitive advantage over organizations operating in other legal regimes. 64% of firms believe MiCA will be able to prevent cryptocurrency fraud and reduce market manipulation. In addition, the new rules can effectively solve the problems that arise when conducting international transactions between cryptocurrency firms in the European Union. Only 10% of the respondents disagreed with this. 46% of organizations responded that the proposed bill pays too much attention to stablecoins. In addition, 49% of participants believe that even if the MiCA is adopted, their activities will not be subject to these rules. 20% of the respondents said that their business would be regulated by these provisions, and 31% could not give a definite answer.
Recall that recently the chairman of the French Financial Markets Authority (AMF) called on European regulators to soften the requirements for blockchain-based projects.