According to Binance Europe executive vice president Martin Bruncko, smaller crypto exchanges and startups can benefit from the European Union’s Market for Crypto-assets (MiCA) regulation.
In a tweet on October 10, ECON member Stefan Berger confirmed that the committee had adopted the MiCA crypto policy, which results from negotiations between the Council of the EU, the European Parliament and the European Commission. Its aim is to build a standard coordination framework for the industry in the 27 countries that make up the European Union. It focuses on various aspects, such as consumer protection, the accountability of crypto companies, prevention of money laundering, the environmental impact of the industry, and stablecoins.
European crypto landscape is currently fragmented, with varying regulatory regimes across all 27 European countries, ranging from “highly restrictive to nonexistent,” Bruncko told Cointelegraph. This has created financially demanding and time-consuming requirements to ensure that exchanges are fully compatible in different regions:
“This is exactly the issue right now and this is why we’re actually, I would say almost excited about MiCA, because it’s creating a single market.”
Bruncko said the current scenario has made it difficult for small players to grow across the continent, given the cost of ensuring compliance across many borders. He added:
“In principle, it’s good news for every crypto player in Europe because, again, you can operate within one market. It’s just making it so much easier to grow your business, to scale your business with much less cost.”
Bruncko predicted that early-stage crypto firms would also benefit from the law because it focuses on growth rather than legal and compliance considerations. Europe is Binance’s hub, which sees the continent as one of the world’s largest and most advanced crypto economies. As leading fintech and financial innovation gather in Europe, Bruncko emphasized that the larger region will continue to be an important operating venue for exchanges.
Bruncko said that many crypto projects were launched in Europe. If you choose Ethereum, it effectively started in Switzerland, London and other places. Since then, we have had various successful and impressive projects coming out of Europe.