MiCA can attract more crypto investment despite overregulation concerns
Europe's Markets in Crypto-Assets Regulation (MiCA) became effective for crypto-asset service providers on December 30, marking the first comprehensive regulatory framework for cryptocurrencies. While concerns about overregulation exist, experts believe MiCA will positively impact the industry by maturing the market and attracting more funds and users. The regulation aims to identify control weaknesses in the crypto space, leading to increased scrutiny of retail investors, who will face greater obligations to provide personal and financial data. Noncompliant blockchain protocols may face legal actions from European governments. Major banks, like Societe Generale, are preparing for MiCA by launching compliant digital asset offerings, including a stablecoin, EUR CoinVertible (EURCV). MoonPay also received MiCA approval in the Netherlands.
