INATBA renews criticism of planned EU crypto regulation

Six months after INATBA’s first statement on the proposals of the European Commission for the regulation of cryptocurrencies, the blockchain association INATBA has presented a report that specifies the main points of criticism of the EU's proposed regulations. The report states that the regulatory proposals under the name ‘Markets in Crypto Assets’ (MiCA) are not beneficial for companies in the crypto and blockchain sector. 

INATBA, which includes players such as Deutsche Telekom, argues that the proposals primarily favour the established financial system. The costs of complying with the regulatory requirements, which require extensive information gathering of financial and customer data, are very high. The report also highlights weaknesses in the MiCA proposals with regard to decentralised financial services (DeFi). According to the report, the proposed regulation would not ‘sufficiently promote’ market niches such as DeFi. The blockchain association's objections are based on surveys carried out among crypto companies. The Blockchain Association calls for an intensified dialogue between legislators and industry participants in the design of the MiCA.