European crypto and blockchain players are worried that incoming regulatory frameworks could usher in “excessive requirements” that could “pose significant challenges for crypto-based projects,” particularly in the decentralized finance (DeFi) space, with “irreconcilable” obstacles, a survey has found.
The survey was commissioned by the International Association for Trusted Blockchain Applications (INATBA), a group founded in 2019 by 106 “developers and users of [distributer ledger technology],” as well as regulators and policymakers. The survey questioned EU-based and -servicing companies and individuals, gauging their response to a European Commission initiative revealed last year.
Named the Markets in Crypto-assets Regulation (MiCA), the Commission’s proposal seeks to create legal definitions for crypto and a pan-European set of regulatory standards aimed at fostering growth, policing exchanges and other crypto companies, and imposing stablecoin governing policies.
And the INATBA report found that while most respondents expressed support for the MiCA definitions of key crypto terms, there were some serious question marks when it came to DeFi, in particular.
The authors wrote, that MiCA’s hopes to “increase transparency and regulatory oversight” would “help build trust in cryptoassets,” but warned,
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