MiCA can attract more cryptocurrency investment despite overregulation concerns

While concerns about regulatory overreach remain, the regulation is expected to be a net positive for the cryptocurrency industry in the long run, according to Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum, a regulatory and blockchain infrastructure firm for institutions.

“In the long run, [MiCA] is completely positive. Every regulation serves to mature the market. It will attract more cash and users,” Radin told Cointelegraph in an interview at Emergence Prague.

However, the rule tries to find “weak points of control” in the cryptocurrency field, which may result in increased scrutiny for retail investors and end-users of crypto platforms, according to Radin. 

Radin, who works with Fideum and the Crypto Economy Organisation, has led various governmental blockchain education projects and participated in regulatory working sessions with European politicians, he told Cointelegraph.

Increased scrutiny for retail investors

According to Radin, the initial deployment of MiCA may have a disproportionate impact on retail investors, as they will be required to submit more personal and financial data for compliance purposes. They’ll be accounted for. Most Europeans will see taxes.” 

The rule also enhances the risk of enforcement actions against blockchain systems that do not meet MiCA criteria. During the early stages of adoption, European countries may take legal action against non-compliant platforms.

Some of the top banks are already planning their digital asset offerings in anticipation of MiCA’s deployment.

Societe Generale, the world’s 19th-largest financial company by assets, has teamed up with Bitpanda to produce a MiCA-compliant stablecoin, the EUR CoinVertible (EURCV). MoonPay, a cryptocurrency payment firm, also received MiCA clearance in the Netherlands on December 30.

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