After more than two years of legislation, the European Union’s Markets in Crypto Assets (MiCA) is set to come into force on Thursday. However, a section of players in the financial sector is now advocating for the introduction of a second version of the rulebook.
It is worth highlighting that not all MiCA regulations will be enforced starting on June 29. Stablecoin rules, for example, will take effect in July 2024, while the rest will be adopted at the end of that year.
Meanwhile, Francois Villeroy de Galhau, the Governor of the Bank of France, is calling for lawmakers to establish MiCA 2.0 to regulate the crypto industry better. Christine Lagarde, the President of the European Central Bank, supports his statement. Lagarde says MiCA 2.0 will help address the existing blind spots like staking, NFTs, and decentralized finance (DeFi).
Is MiCA’s Second Version Already Underway?
The European Union Commission has yet to start working on MiCA 2.0. However, after one and a half years, the Commission is expected to issue reports regarding gaps in the legal framework. The current MiCA rulebook only covers stablecoins and unbacked fungible tokens like Bitcoin and Ethereum.
It is believed that the EU Commission will only propose a new version of MiCA if the reports show the current version is not adequate.
Keyrock’s head of regulatory compliance Laura Chaput is one of the many crypto players who have welcomed MiCA. Chaput says the rulebook addresses all the major concerns and asks lawmakers to focus on its implementation before embarking on establishing more regulations.
Also, the Flowdesk’s head of compliance Anne-Sophie Cissey, recently said, MiCA provides the regulatory clarity needed to encourage blockchain innovations.
What Areas Would MiCA 2.0 Address?
While there is no guarantee that a second version of MiCA will ever be established, this has not stopped financial experts from discussing it, with many suggesting what it should address. Ex-central banker and Monerium founder Jon Helgi wants MiCA 2.0 to focus on Decentralized Autonomous Organizations and DeFi.
He also wants banks to be allowed to benefit from blockchain technology without too many unnecessary limitations.
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