The Markets in Crypto-Assets (MiCA) regulation has been in effect in Europe for nearly 200 days and has already shown its benefits for market participants.
How Crypto Companies Leverage MiCA
The MiCA norms provide cryptocurrency firms the opportunity to enhance their market positions despite the challenges associated with compliance. According to Bybit EU managing director Mazurka Chen, there is no clear guidance for ensuring compliance, leading to uncertainty. Large companies may find it easier to bear the expenses, while smaller firms could exit the market due to high compliance costs. At the same time, representatives from Circle argue that MiCA opens opportunities for developing a unique European crypto asset market.
Benefits of MiCA for European Crypto Investors
Investors benefit from MiCA norms as they contribute to improved customer protection, facilitating bank transfers and expanding access to traditional financial institutions. Bybit CEO Ben Zhou noted that having a license allows clients to easily deposit and withdraw funds from bank accounts. Additionally, MiCA helps establish reliable safety standards for client assets and funds on exchanges.
Increased Competition in the Crypto Exchange Market Due to MiCA
Major American exchanges like Coinbase and OKX have already secured MiCA licenses, creating a positive trend in the market where the number of exchanges is rising, thus increasing competition. Zhou emphasized that the actions of European regulators generate interest and encourage other regions to develop comparable regulatory frameworks.
MiCA regulation demonstrates clear advantages for both cryptocurrency companies and customers in Europe, creating a safer and more transparent investment space.
