Mriganka Pattnaik reposted this
A big thank you to Robert D. Knight (LION) Knight and Cointelegraph for including my insights on the global state of crypto asset regulation. Few thoughts: 🇺🇸 Industry participants eager to comply with regulations face difficulties due to the lack of clear guidance on how existing rules apply to them. The absence of clear, upfront guidelines means businesses often find themselves navigating a regulatory minefield, uncertain if their operations comply with current or future interpretations of securities laws. 🇺🇸 This has led to a regulatory style termed "regulation through enforcement," where the boundaries of lawful behavior are defined through enforcement actions rather than clear, proactive guidelines. It could drive crypto businesses to relocate not in search of less regulation, but for a jurisdiction with clear legal context and a more predictable regulatory environment. 🇬🇧 The UK's approach involves gradually implementing retrofitted regulations, requiring businesses to constantly adjust to an evolving regulatory landscape. This ongoing adaptation process can lead to substantial costs and operational inefficiencies for these businesses, alongside a significant degree of legal uncertainty. 🇬🇧 When looking into the FCA registration statistics, it becomes apparent that there is a disproportionately high number of applications that are withdrawn by the companies themselves compared to those that are outright rejected. This significant disparity suggests that there are specific reasons behind the withdrawal of these applications, hinting at underlying factors or considerations that lead companies to retract their applications voluntarily. 🇪🇺 The natural intersection of MiCAR with other financial laws necessitates a clear demarcation and resolution strategy to address overlapping or conflicting regulations. Policymakers are tasked with the crucial role of delineating these intersections, ensuring that regulations can coexist without imposing dual requirements and undue compliance burdens on companies. 🇪🇺 MiCAR does not provide a straightforward path for non-EU entities to offer services within the EU, and these firms are advocating for more explicit instructions on how to offer services to EU clientele. Currently, the mechanism of reverse solicitation poses practical challenges. There is a strong anticipation for guidance on regulatory equivalence arrangements, enabling third-country firms to leverage these frameworks for service provision within the EU. Link: https://lnkd.in/e2pZxB4B Merkle Science
