Europe’s crypto industry is bracing itself for change as revisions to the landmark Markets in Crypto Assets (MiCA) regulation are likely to come into effect, and the political futures of its two key architects are uncertain.
The MiCA regulation, which aims to provide a comprehensive framework for the crypto sector, was proposed by the European Commission and spearheaded by Commissioner Mairead McGuinness and Greek politician Eva Kaili, who was removed from office due to a corruption scandal. Kaili’s dismissal has been seen as a blow to crypto policy efforts.
However, German lawmaker Stefan Berger, who was the rapporteur for the package, helped guide it through the European Parliament (EP) and ensure its passage. Berger’s re-election is uncertain, and it remains to be seen if he will continue to play a key role in shaping the sector’s future.
The EU’s focus is shifting towards artificial intelligence (AI), and the crypto industry is eager to ensure that blockchain technology is at the forefront of this new era. Industry associations, including Blockchain for Europe, have issued a manifesto pledging to promote the use of blockchain in the bloc to avoid falling behind in the global digital economy.
The manifesto highlights the potential for blockchain to serve as the trust layer for the convergence of AI, virtual reality, and other emerging technologies. It also emphasizes the importance of having a younger and more tech-savvy parliament to promote the adoption of blockchain and digital assets.
Robert Kopitsch, secretary general of Blockchain for Europe, believes that having a wallet full of crypto makes one more open to the idea of a digital economy. Marina Markezic, co-founder of the European Crypto Initiative (EUCI), agrees that younger politicians are likely to be more familiar with blockchain technology and its applications.
Benedikt Faupel from Bitkom, a German digital industry association, notes that the timing of the manifesto is crucial, considering the upcoming elections and potential changes in the political landscape.
Change is inevitable, and the industry may potentially lose some of its most supportive lawmakers. Markezic points out that crypto policy in the EP has always had limited support and was primarily driven by a handful of individuals. Kaili’s dismissal and Berger’s uncertain future only add to the uncertainty.
According to Jonas Gross, head of the Digital Euro Association, the outcomes of the elections are difficult to predict, and it is hard to discuss specific officials who might not return this year. Gross hopes for a new parliament with an innovative focus on digital money-related topics.
Another key area of focus is the EU’s push for a central bank digital currency (CBDC), which is raising concerns about government control and access to personal data. Right-wing political parties are using these concerns to create a negative mood towards the EU, and some have even accused the CBDC of excluding marginalized groups.
However, the EU’s tech policy priorities are shifting away from crypto and towards AI. Anja Blaj, policy expert at EUCI, notes that the industry is pushing for the application of blockchain technology in conjunction with AI.
Regenerative Finance (ReFi) sees cryptocurrency projects investing in sustainability and efforts to fix some of the problems created by traditional markets. Setting up blockchain as vital to the digitization of Europe may prove critical to the industry’s survival in the region.
Europe’s elections will take place from June 6 to 9, and the outcome will likely have a significant impact on the sector’s future. The industry is holding its breath as it waits to see how the elections will shape the regulatory landscape.
Conclusion
The EU’s crypto industry is on the cusp of significant change as the regulatory landscape evolves. The outcome of the elections will have a profound impact on the sector’s future, and the industry is holding its breath as it waits to see what lies ahead. While the potential loss of key lawmakers is a concern, the industry remains committed to promoting the use of blockchain technology and ensuring its place in the digitization of Europe.
FAQs
- What is the Markets in Crypto Assets (MiCA) regulation?
- MiCA is a landmark regulation that aims to provide a comprehensive framework for the crypto sector.
- Who are the key architects of MiCA?
- Commissioner Mairead McGuinness and Greek politician Eva Kaili were instrumental in proposing and guiding MiCA through the European Parliament.
- What is the significance of Stefan Berger’s re-election?
- Berger’s re-election is uncertain, and his continuation as rapporteur for the package will depend on the outcome of the elections.
- What is the focus of the EU’s tech policy priorities?
- The EU’s tech policy priorities are shifting away from crypto and towards artificial intelligence (AI).
- What is Regenerative Finance (ReFi)?
- ReFi sees cryptocurrency projects investing in sustainability and efforts to fix some of the problems created by traditional markets.
- When will the European elections take place?
- The elections will take place from June 6 to 9.
