Opinion: Julie Bourgeois, Legal and CONFORMEDY, 6 monks
The regulations regarding digital assets are quickly evolving to ensure transparency and security for all market participants. This is not more noticeable than in Europe, where two different regulatory models have appeared.
On the one hand, there are markets of the European Union in cryptocurrencies (MICA), which offer precise regulations for all 27 member countries. On the other hand, there is Great Britain, which after Brexit still has no common regulations such as Mika.
With him recent “Plan of change”, says Great Britain that he wants to be “the best place in the world for innovation” and is working on recent regulations to better protect people and support cryptography growth.
For fund managers, these differences can become a arduous puzzle to solve. Should they favor the legal certainty offered by the EU in accordance with Mika? Or maybe they should focus on the upcoming changes in Great Britain?
What can Mika promise?
Mika explained questions about cryptocurrencies in the EU. Today, the regulation is a comprehensive and, more importantly, harmonized framework in all Member States.
Perhaps the most critical advantage of Mika are passport mechanisms, which many companies already exploit. After the end of the grandfather and the National National Office, it provided its green airy via the MICA license, the cryptographic service provider may offer cryptocurrency services for any country in the EU. This is desirable that planning companies will scale their activities at the EU level – never more fragmentary regulations.
The positive impact of Mika, especially at the stage of business scaling, can be seen in the region. Earlier, the launch of the EU in another country meant the adjustment and months of approval. Now approved status of a licensed CASP in one country means that you work in accordance with the law throughout the EU. This saves tens of thousands of euros and months of work.
The agile approach of Great Britain
There is Great Britain in the whole channel, which has a more adaptive but fragmentary approach. So far, Great Britain has no unified law similar to Mika, but has a bold vision of cryptocurrency integration to existing systems.
The project of cryptographic legislation in Great Britain, part of the “change plan”, promises to create regulations that will ensure greater transparency. Official regulations are created for the first time, not only recommendations to regulate the cryptographic industry in Great Britain.
The main goal of the country is to protect cryptocurrency users by establishing clear provisions regarding the disclosure of risk when buying cryptocurrency assets and precise service conditions. Considering that crypto can escalate the economy of Great Britain by 57 billion British pounds ($ 77 billion), these recent rules can significantly affect the cryptocurrency environment in Great Britain.
Last: Digital euro, not Mika, the key to cryptographic risk management: the head of the Italian bank
Although regulations are more, it leaves room for innovation. The United Kingdom discusses the creation of a common sandbox with the United States – an regulated environment of testing recent cryptographic products.
Decision on the cryptocurrency fund
Choosing a place where you configure can be a arduous decision, taking into account these differences. Especially in the case of cryptographic funds. This is not only a legal question, but a strategic decision because they work closely with cryptographic asset service providers. What should they take into account when making this choice?
Thanks to MICA as a unification law, EU -based cash registers can exploit a more stable compatibility environment. The regulation creates a single license system for cryptographic asset service providers.
Today, Mica offers managers and guardians, which is particularly critical to be institutional acceptance. This predictability can become a significant competitive advantage for the EU and can lead to more companies to residence. This applies especially to companies that are addressed to cross -border expansion or institutional clients.
Luxembourg can become a potential place to set up a fund in the EU. It has a robust history as the best financial center and successfully creates and manages funds. His clear rules and support for recent ideas make it an knowledgeable option to start and launch cryptographic investment funds within Mika.
On the contrary, Great Britain offers something more elastic and easier to develop. This derives recipients from, for example, FinTech pioneers who test recent ups. Because the United Kingdom is willing to experiment with the aforementioned sandbox regulation, it may become the target of attraction for residence.
Two paths with different strengths
The United Kingdom intends to introduce crypto into a classic financial system. Entering the market is more open to recent decentralized products. To say, the flexibility of Great Britain is a significant advantage. If in the near future the United Kingdom can balance innovations with investors’ protection, it may become a leading DEFI center.
Meanwhile, the regulation of Mika EU provides a consistent legal environment. Thanks to the robust EU rules, it is positioned as a sheltered haven of cryptographic funds and a global example of how regulation can introduce brightness and escalate attractive markets.
Ultimately, this is not a matter of one region defeating another. Instead of competition, they can complement each other by shaping the future of digital assets.
Opinion: Julie Bourgeois, Head of Legal and Compliance, 6 monks.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
