Posted on 12. February 2023 in Allgemein
• The EU’s Markets in Crypto Assets (MiCA) regulation is ambitious and sets a high standard globally, but Article 68 poses a risk to innovation, privacy, and security.
• Article 68 could limit the growth and innovation of the blockchain industry by requiring crypto asset holders and transaction histories to be identified by authorized service providers.
• A more flexible approach is needed that allows for continued growth and innovation while still protecting stakeholders’ privacy and security.
The European Union recently passed an ambitious comprehensive crypto regulation known as Markets in Crypto Assets (MiCA). Although this regulation sets a high global standard, it contains language within Article 68 that threatens innovation, privacy, and security.
Article 68 of MiCA requires trading platforms for crypto assets to prevent trading with built-in anonymization unless holders of the assets and their transaction history can be identified by authorized crypto-asset service providers. This language could have a detrimental impact on the growth and innovation of the blockchain industry, as well as on the privacy and security of individuals, businesses, communities, and nations.
Regulators must understand that the blockchain industry is still in its early stages of development. Therefore, a one-size-fits-all regulatory approach may not be suitable for this sector. Instead, it is necessary to adopt a more flexible approach which allows for continued growth while also ensuring compliance with regulatory requirements and protecting stakeholders’ privacy & security.
It is vital that regulators take into account both sides when formulating regulations in order to ensure sustainable growth of the blockchain industry while still preserving personal data safety & confidentiality.
Regulators should consider adopting a more flexible approach when developing regulations related to blockchain technology in order to protect stakeholders’ interests while allowing for innovative ideas & technologies to flourish within the space.