There have been some flaws and discrepancies indicated by the International Association for Trusted Blockchain Applications as the European Commission proposed their new crypto regulations.
INATBA’s Report on EC’s Proposed Regulations
INATBA or the International Association for Trusted Blockchain Applications sent their first response to the legislative proposal for the regulation of crypto-assets put up by Europe’s Commission 6 months ago. INATBA has now released a comprehensive report which highlights the main flaws in the proposed plan and what is needed to be done about them.
As stated by the recently published report by the INATBA, it argues that the new legislative proposals put forward by the commission which regulate the crypto-asset markets are not favorable for new and emerging blockchain and crypto-asset firms. Nonetheless, the INATBA group said with the backing support of ConsenSys and Ripple that the European Commission’s legislative proposals give an unfair advantage to the firms which are already well established and in their ripe form in the financial environment.
This is indeed the criticism that is common among the blockchain and crypto investors that are in the areas which are helping the investors by regulating the digital asset ecosystem and making it more secure. The main factor which is leading to the regulation proposal being unfavorable is the fact that it ties the hands of the firms who are trying to flourish as the regulators demand extensive customer and financial disclosure, which has a huge compliance cost associated with it.
Can MiCA Be the Solution?
MiCA is also a part of the EC’s digital finance sector. It is still an on-paper plan, but it could be made applicable all across Europe’s Economic sector if it gets approved. While MiCA looks good theoretically, the INATBA’s report has also made some comments and has pointed some flaws in the MiCA regulations, which cater to the area of decentralized finance. The report by INATBA stated that the MiCA regulations do not sufficiently cater to some niches of crypto assets such as the decentralized finance markets.
All these suggestions came into being after the International Association for Trusted Blockchain Applications held a survey pertaining to the practical applications of these regulations and their effects on the crypto and digital asset industry.