By Peter Curk
MiCA marked a turning point for Europe, proving the EU can lead in crypto regulation. But to stay ahead, it must build on this foundation, expanding MiCA to include DeFi, NFTs, and staking, creating a cohesive, enforceable framework that balances innovation with trust and positions Europe as a global crypto leader.
Europe has never been known as a powerhouse of innovation. With tight regulatory standards, it’s typically positioned as the cautious stickler, risk-averse, and far from disruptive. While technology has been adopted, Europe has done it at its own pace, lagging behind the likes of Singapore and America. But recently, the European Union (EU) has taken an uncharacteristic step, with the introduction of the Markets in Crypto-Assets (MiCA) regulation. While regulation is very much at one with the EU’s ethos, becoming the first major economic bloc to implement a comprehensive regulatory framework for crypto shows a forward-thinking outlook that has surprised many. And, if built upon, could signal a more progressive future for Europe. But now is not the time for the EU to rest on its laurels.
MiCA and the future of crypto
Cryptocurrency has been a great divider, with a global regulatory environment that remains fragmented and uncertain. But MiCA sets Europe apart. While the US relies on courts, litigation, and enforcement actions for anything close to regulation, and the UK is still developing its crypto policies. the EU has led the way with clarity and consistency. MiCA might not be perfect. There are many people who would argue as much. And yet, it remains a strategic differentiator, and holds the potential to be a catalyst for global crypto leadership. But it is just the start.
As it stands, MiCA covers stablecoins and crypto-asset service providers (CASPs), creating common rules around licensing, disclosure, and operational standards across all 27 EU member states. However, there remain key areas of the digital asset economy outside of MiCA’s scope, including decentralised finance (DeFi), non-fungible tokens (NFTs), and crypto staking. These grey zones not only create regulatory uncertainty but risk undermining the clarity MiCA aims to deliver. It’s time to do more. To make the EU not just a regulator but a genuine enabler of digital finance.
MiCA 2.0?
If Europe is serious about leading in the future of finance, it cannot stop with the current rendering of MiCA. The true opportunity lies in building a MiCA 2.0. This would be an expanded, refined framework with the capability to evolve at the pace of innovation. The creation of a single digital asset rulebook that closes all of the current loopholes and can scale simply and with clarity to cover a market of over 400 million people.
If this happens, the EU will not only be a global leader in crypto regulation, but the most attractive destination for global crypto firms. Especially those seeking long-term stability and regulatory certainty. Entrepreneurs gain clear guardrails. Investors gain confidence. And policymakers gain a platform to shape global standards, much as they did with the General Data Protection Regulation (GDPR).
When Europe introduced GDPR in 2016, many dismissed it as overly bureaucratic and anti-innovation. Yet it quickly became a global benchmark, with countries from Brazil to Japan adopting GDPR-like frameworks. Companies that wanted to operate globally began treating GDPR compliance as the default standard. The EU’s early action and cohesive policy set the tone worldwide. MiCA could do the same for crypto, but it has to move fast.
What should the EU do next?
If MiCA is going to reach its full potential, the EU needs to engage deeply with stakeholders in all of the areas it currently lacks. DeFi, where it’s hard to apply traditional regulatory models. NFTs, which are no longer simply digital artworks but functional financial instruments. And staking, which can be awkward to classify, sitting somewhere between investment and infrastructure.
And then comes the matter of enforcement. Regulation only matters if it’s applied uniformly across borders. The EU must ensure that this happens. Otherwise, what’s the point? But in other areas, EU policy is not always fully and consistently enforced across all member states, despite the fact that it’s intended to be. But without consistency and a robust supervisory mechanism, MiCA loses its power, becoming inefficient, ineffectual, and effectively pointless. This is something that needs to be dealt with soon, if the EU is to unleash its full potential.
The evolving global regulatory landscape
With MiCA, the EU is well-positioned. A leader in its field. But it can’t stand still. The UK may be small, but it’s agile. And it’s beginning to move in the right direction. Right now, the US is paralysed, but that may change with the next change of government, and it has the power to make an impact. But if the EU’s policymakers are bold enough to keep going, it has all of the right ingredients to dominate the field, defining not only how crypto is regulated, but how digital assets underpin the next generation of financial services. But they have to act now.
MiCA has shown that the EU can move with clarity and purpose in spite of an apparent lack of previous interest. Now it must follow through. Creating an expansive regulatory framework that protects investors without stifling innovation, retrofitting trust and transparency into the industry’s foundations, and setting a clear pathway for the future.
Digital assets are no longer niche. They’re becoming interwoven with the infrastructure of global finance. As such, they need to be governed. And the EU is in a position to lead the way.
About the Author
Peter Curk is CEO of ICONOMI, a leading platform in digital asset management. With a background in finance and blockchain, Peter is passionate about making crypto investing accessible for everyone. Under his leadership, ICONOMI has grown into a trusted name in the industry, offering innovative solutions for individuals and institutions.
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