Recently, the European Parliament approved the Markets in Cryptocurrency Act (MiCA) rules. The MiCA regulations have seen some positive reactions from crypto enthusiasts as they considered it to be a watershed period, especially in Europe.
The co-CEO of Swarm DeFi exchange, Philipp Pieper commented on the regulation. According to him, the MiCA marks the beginning of a new era for crypto space and Europe has become the pioneer of the new era.
As previously reported, the European Union policy makers approved the MiCA on Thursday. The approval makes Europe the first major global district to form a lucid and clear crypto regulatory framework.
Commenting on the new development, many crypto enthusiasts explain their opinion on the law. Many considered the MiCA regulations as a progressive law that protects investors and guides the conduct of exchange within the region.
Joining the discussion, Philipp Pieper remarked that with the new unambiguous and easy-to-comprehend law, the crypto space is now a bit safer for investors. Because it prevents exchanges from all forms of shady operations that can lead to bankruptcy, hence securing investors’ funds.
Explaining his stance, the CEO believed that the regulation has potentially established the EU as a global blockchain hub. He added that the crypto-friendly environment in Europe can make the country outrun its peers that are still stuck with crypto regulatory ambiguity.
Regulation Becomes Necessary In The Crypto Space
Pieper urged that the MiCA enforcement should not be considered a terrible development. Rather, he believed that it is a big step in the positive direction for crypto firms in European territory.
He continued that the clear crypto framework would guild exchanges on how to legally operate in the country without having issues with the authorities. He said this was unlikely for exchanges operating in the US who are currently caught in the web of ambiguous laws.
The CEO of Swarm stated that his company would be one of the pioneers to experience the impact of the law as it earlier registered with the Basin in Germany. Swarm is a regulated platform that offers Real World Assets trading to customers on-chain.
Talking about the upcoming enforcement of the MiCA, Pieper commented that any inconvenience that occurs should be regarded as a pain during the growth process. He believed that the crypto space is experiencing rapid growth which necessitated the presence of solid and clear regulation.
The CEO claimed that since crypto technology has some anti-government attributes, regulation is certain to come and there is no point resisting anymore. Referring to statistics, he said that about 300 firms would need to register under the authorities according to the new regulation.
Furthermore, Pieper acknowledged that a large number of firms to register would create a significant bottleneck in the space. This is because the firms might have to pause their operations during the exercise.
The US Is Mired With Ambiguous Crypto Rules
As Pieper rightly claimed, the United Kingdom is significantly ahead of the United States in terms of cryptocurrency regulations. This is evident when a major UK minister hinted that the country might enforce its crypto laws in months.
Meanwhile, the Chairman of SEC, Gary Gensler received criticism as he failed to answer questions during the recently concluded Congressional hearing. Ryan Selkis, Messari CEO, tagged Gensler’s responses in the meeting as a “train wreck.”
Also, the CEO of Coinbase, Brian Armstrong revealed his dissatisfaction over the lack of clarity on crypto regulation in the country. He stated that should the situation persist, the IS-based firm might shift operation to an offshore country with a crypto-friendly environment.