On March 20, Circle’s Director of EU Strategy & Policy, Patrick Hansen, published an article on the Circle blog discussing the impact of the Markets in Crypto-Assets Regulation (MiCA) on the European Union’s (EU) crypto industry.

The article highlights how MiCA will change the way crypto companies operate in the EU, providing them with the ability to serve the entire EU market with just one license. Before MiCA, crypto companies had to comply with the regulatory frameworks of each of the 27 member states, leading to higher costs and limiting their competitiveness compared to US or Asian counterparts.

MiCA’s implementation is expected to have several positive impacts on the EU crypto industry, including increased competitiveness and market share for regulated businesses, institutional adoption and activity, and potentially becoming a huge opportunity for economic and technological revival in the EU.

However, the success of MiCA will depend on the implementation standards and enforcement practices developed by EU supervisory authorities in the next 12-18 months. Some of MiCA’s passages carry the risk of burdening industry participants, and their full effects will only become apparent once technical implementation standards provide practical operational guidelines.

MiCA has the potential to become a globally adopted regulatory standard like the GDPR is today for privacy. The EU market is the largest internal market in the world with 450 million relatively wealthy consumers. By the sheer size of its market, MiCA will likely persuade many companies worldwide to adopt its operating standards, possibly on an international scale, in order to maintain globally streamlined operations and products. The article also notes that the longer the US regulatory vacuum for crypto-assets persists, the greater the global impact of MiCA standards will be.

In conclusion, the MiCA regulation could represent a positive boost for the EU crypto industry and the EU economy overall, but its success is highly dependent on the development of practical implementation standards. MiCA could set global standards for crypto regulation, but its practical success is the only thing that will matter at the end of the day.

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This article was republished from azcoinnews.com