Bitpanda manager for public affairs alerts the persistent differences in the application of Mica regulations throughout Europe. Despite its promises of harmonization, the European Union is trying to create a real single market for crypts. Sica is definitely going on, but each Member State interprets and exercises the law in its own way.
In short
- The Bitpanda platform has three Sica licenses, a record in Europe.
- The implementation of the mica remains fragmented according to the EU Member States.
- Some national regulators apply strictly the law, others much less.
- Bitpanda prompts to fill in these differences to guarantee fair competition.
Bitpanda criticizes the incomplete harmonization of the Mica
Benedict Faupel, head of public affairs in Bitpanda, showed his concerns during the German blockchain week.
Founded in 2014, the Austrian Stock Exchange has three Sica licenses, a record in industry. This privileged position offers him a unique observatory in the application of the European regulatory framework.
” With mica everything is much easier », Faupel recognizes.
The regulations actually ended the previous chaos, where at least 17 separate licensing regimes coexisted in Europe. This fragmentation forced the crypto actors to navigate in a complex regulatory labyrinth to work on a European scale.
However, the promised harmonization remains largely theoretical. National regulators interpret mica according to their own prisms and create de facto different standards from one country to another.
This “La Carte” approach threatens the basic goal of the sole European cryptocurrency market.
The most striking example concerns licenses. Some regulatory bodies require exhaustive institutional examinations before passing their permission.
Others prefer a more pragmatic approach and deepen their analyzes if necessary.
This creates a kind of imbalance.
The challenges of European harmonization
This fragmentation is hardly surprised by the well -known observers in this industry.
It’s predictable. It is not your own mica but simply the result of an attempt to regulate the sector as young as the crypts.
Benedict Faupel
By definition, the market is as disturbing as the digital assets market resistant to regulatory standardization efforts.
However, the consequences of this heterogeneity exceed the simple administrative puzzle. They introduce distortion of competition among European actors: some develop in a favorable environment where others come against heavier or slower regulations.
For crypto, this means adapting your expansion strategies to national restrictions – an obstacle to the flow of development on a continental scale.
Faupel therefore requires further harmonization between regulatory bodies.
The sector was supposed to expect. We need to fill in the regulatory gap between Member States of the heights to guarantee the conditions of fair competition in the European Union.
However, it acknowledges that this convergence can only undergo progressive adjustments to the control framework.
Given the BitPand campaign for real cohesion in performing the rules. The goal is clear: to enable companies compatible with no obstacles on the European market.
And this is not a theoretical problem. Institutional acceptance is accelerated, as evidenced by the partnership between Bitpanda and Deutsche Bank, which next year plans to offer their customers to store cryptos.
Sica is the main progress to regulate digital assets in Europe. But without the real harmonization of its application, its promises can disrupt its promises. Bitpanda invites to correct a shot before the EU loses its advantage in the world race to set the standards of crypto regulation.
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Passionate Bitcoin, I like to explore meanders blockchain and cryptos and share my discoveries with the community. My dream is to live in a world where privacy and financial freedom is guaranteed for everyone, and I firmly believe that Bitcoin is a tool that can make it possible.
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