According to a report by Cryptonews on December 30, Marina Markezic, co-founder of the European Crypto Initiative (EUCI), stated that the arrival of the EU cryptocurrency regulations (MiCA) will lead EU member states to compete to be the most attractive business locations for investments. She pointed out that jurisdictions adopting MiCA will become key crypto hubs, with Germany and France as strong competitors, while countries like Estonia, Malta, and Portugal may also attract global players with flexible regulations and competitive tax rates.
Markezic explains that MiCA provides a 'unified regulatory framework' that allows for 'license passporting', meaning companies approved in one member state can operate throughout the trade area. EUCI expects that in 2025 Europe will welcome a 'more mature and regulated crypto market', providing legal certainty for institutional and retail investors and promoting the adoption of blockchain.
However, Markezic also warned that the implementation of MiCA could lead to 'considerable confusion', as the 27 member states may have different interpretations of the regulations. Additionally, uncertainty exists regarding which projects and assets fall under MiCA, potentially leading to more scrutiny and challenges for smaller projects and emerging innovations. EUCI also predicts that many tokens may be delisted from centralized platforms due to non-compliance with regulatory standards, and retail investors may face reduced diversity in stablecoins. Markezic believes that MiCA will accelerate the institutionalization of the EU crypto market, facilitating mergers and acquisitions between traditional finance and crypto enterprises.
Erald Ghoos, General Manager of OKX Europe, predicts that 2025 will be a transformative year for the crypto industry, especially in Europe. He believes that Bitcoin's historical highs indicate a growing trust and interest in digital assets, while the introduction of MiCA brings a much-needed framework that provides greater clarity and security for the industry. Regarding decentralized finance (DeFi), although MiCA primarily does not directly regulate it, regulatory ambiguity may create friction, especially when member states attempt to regulate interfaces or service access points. Phil Larratt from Chainalysis warns that violent cyberattacks are on the rise, and social engineering and fraud account for about 40% of crimes in England and Wales. He emphasizes that the public sector cannot tackle crime-related challenges alone and requires a comprehensive response from the entire ecosystem.