The Markets in Crypto-Assets (MiCA) Regulation is in effect, signaling a significant change in tackling crypto.
Crypto technology has always boasted about being decentralized and functioning above any governing body. And while these fundamentals will not change, MiCA will still bring various impacts to the industry. At the forefront of changes lies the EUs desire to promote a safe and regulated industry within its borders by tackling crypto’s decentralized, and from their perspective, chaotic nature. Up till now, anyone could make, distribute, and organize cryptocurrencies.
But now, after MiCA takes effect, some rules and regulations will be placed to protect the end customer and define certain crypto business laws. The good side of the MiCA laws will benefit legitimate crypto businesses, like a casino accepting crypto, gaming companies, crypto charities, and others, who register and do business by the MiCA standards. These sites offer many benefits for users, for example, crypto casinos let players access their winnings instantly, while charities accepting crypto allow people to donate anonymously.
The concerning part is always government regulations whenever a governing body interferes with any industry or living aspect. The red tape, laws, procedures, and costs have already deterred some stablecoins, who are exiting the EU marketplace.
For whatever reason, moral or financial, this may be, it will have a global effect. The US crypto market is not far from its EU counterpart, it was estimated at $1.19 billion in 2022 and has only risen by now. What is bad news for the EU could yield a net positive for the US, as all fleeing cryptocurrencies can now focus on the strong US market. It could be possible that we’ll soon see an influx of new stablecoins on the US market and a higher degree of trading and competition. Industries like crypto gambling can benefit by including these new coins, as well as any other crypto sector.
That is until the US decides to follow in the EU steps. One way we can see the changes from MiCA happening is by viewing the listing of stablecoins on the crypto exchange markets, as certain exchanges are already delisting non-compliant cryptocurrencies. The EU and the EEA (European Economic Area) users are now under the protection of the MiCA, but it’s still too early to tell if this will be for their benefit or if they will be worse off than before the MiCA times. The final deadline to clean up the list is June 30th.
But even if the US does copy MiCA word-for-word (which is highly unlikely), each US state has certain liberties when enacting the law. For example, each US state has its interpretation and laws regarding gambling, casinos, and betting, and we could see the same regarding cryptocurrencies. Some states could then become havens for crypto, others could expel it, and there could even be a mixed model. Businesses are already taking notice, and the climate is shifting towards security.
Whether it is the EU or the US, both governing bodies have supreme authority over the matter, which instills trust and protects the end user from potential fraud. Time will tell if the added laws that boast consumer protection will be enough for the US to follow in the EU steps, or only watch and adopt the successful parts of the EU crypto experiment.