Explore the EU’s new MiCA (Markets in Crypto-Assets) law and how Binance, Coinbase, and Ripple have reacted. Learn how this regulation will impact the global bitcoin market and investors and traders.
After being eventually adopted, the new cryptocurrency law in the European Union, known by the abbreviation MiCA (Markets in Crypto-Assets), sparked a flood of responses, including those from Binance, Coinbase, and Ripple.
Representatives of some of the top exchanges in the world, like Binance and Coinbase, as well as some of the top businesses in the sector, like Ripple, made specific comments.
Following Binance’s remarks on MiCA are those from Coinbase and Ripple
Binance is the world’s largest cryptocurrency exchange by trading volume. Despite some problems leading to the shutdown of specialized services in some EU countries. Binance remains extremely active in Europe, showcasing its continued growth and importance in the global cryptocurrency market.
Binance has recently run into issues with US regulation, particularly after being accused by authorities of permitting the exchange of unregistered securities. But practically every exchange operating in the US has this issue.
Richard Teng, Regional Head of Europe and MENA for Binance, commented on the new European crypto regulation as follows:
Today’s vote in the EU to implement the Markets in Cryptoassets (MiCA) regulation has marked a milestone in the development of the cryptocurrency and Web3 industry.
The regulatory landscape has shifted forward and that is a positive thing for users and the industry.
MiCA will bring regulatory clarity to one of the largest markets in the world, making the EU, an even more attractive place for Web3 companies to innovate and attract talent.
As with all regulation, the small details will be key, but overall we believe this is a pragmatic solution to the challenges facing the industry. At Binance, we are putting together clear rules of the game for crypto exchanges to operate in the EU.
We will make the necessary changes to our business over the next 12-18 months to fully comply with regulation, protect users and support innovation.
Therefore, this is a very encouraging response.
The MiCA’s final form has addressed some of the significant flaws from prior drafts and provides a simple and complete framework that helps crypto enterprises understand what they may and should do.
Binance’s praise isn’t surprising, especially considering the many challenges in other important contexts where the rules are still unclear, including the US.
Crypto operators may now operate in the EU due to MiCA.
Coinbase expresses itself
The biggest US cryptocurrency exchange is Coinbase, and it also has a considerable following in Europe.
Despite the larger volume of the US market, Coinbase is a publicly traded firm. As a result, Coinbase is considered generally safer due to strict governance requirements. This stands in contrast to the European market, which has a smaller volume and may have less strict regulations.
Tom Duff Gordon, vice president of foreign policy at Coinbase, said:
The European Parliament’s adoption of MiCA today is a pivotal moment for the crypto industry in the region, and the work of European policymakers should be seen as exemplary.
The region is recognizing the potential and societal promise that emerging technology can provide.
The EU is stepping up to the mark, while other notable jurisdictions are struggling to provide a solid, cohesive regulatory framework that gives clarity to a burgeoning innovative industry.
This proactive step taken by the EU proves their commitment to embracing technology that will update legacy systems and in doing so, allow for the creation of new opportunities.
Already we are seeing that the EU now matches the US in its share of software developers; around 30% apiece globally. The US used to lead the charge with 40%. This level of growth does not happen by chance.
Concerted efforts have to be made, such as developing a regulatory framework that will provide clarity and stability for businesses operating in the space.
But now that the new European regulations are in place, the US may simply follow their lead so that it has a clear road to follow and can quickly establish a full legal framework for cryptocurrencies in order to recoup lost competitiveness.
Response from Ripple
Ripple is one of the top cryptocurrency firms in the world when it comes to market value. Its XRP cryptocurrency is ranked fourth globally when stablecoins are not considered. Cardano’s ADA, the fifth cryptocurrency, has a market value of only $10 billion. ADA capitalizes just slightly more than half of XRP, which has a market value of over $19 billion.
Andrew Whitworth, EMEA Policy Director for Ripple, stated:
The European Parliament’s passing of MiCA is an important milestone for the crypto industry around the world.. Now that the EU has provided comprehensive clarity about the regulatory treatment of the crypto industry, it is up to the European Supervisory Authorities and National Competent Authorities to develop the specific rules and requirements for firms.
Consistency in implementation around the EU will be key in providing crypto companies with the operational clarity to fuel innovation across Europe and guard against unwitting fragmentation of the Single Market. As part of this, there is a need to ensure that the legislation is applied proportionally with regards to how different companies’ crypto offerings are treated, based on the risk profiles of their activities.
Fundamentally, this is an exciting development for the industry and we look forward to supporting the EU and national authorities as they apply the regulation to ensure the European crypto industry thrives and grows.
Because the theoretical norms are now clear and definite, Whitworth appropriately switches the attention to implementation.
He also notes that the EU has various countries with diverse laws, so applying the same policy may be difficult. It’s too early to declare triumph since failure to do so would cause regulatory pandemonium.