Regulators and professionals described several potential hazards of EU national encrypted asset sales market (MICA) regulation at Block chain Technology week in Paris, France in 2023.

One group is called "Mica: how do EU countries regulate encryption algorithms?" An in-depth analysis of the proposed mica policies and regulations is planned to come into effect in 2024. The nearly 400-page basic guidelines for the regulation of cryptocurrencies and digital currencies have been a key topic of discussion across the continent.

As a team leader in the Digital Finance Department of the European Commission, Gundars Ostrovskis brings an internal structural view to the development and design of MICA documents. Orovskis collaborated with colleagues who drafted cloud card laws and regulations to articulate the belief that the law would benefit businesses and users in the cryptocurrency ecosystem:

"it is clearly expected that it will help strengthen the industry based on regulatory predictability, which is actually one of the important things for the company's development strategy and maintaining the industry's customers while ensuring the integrity of the sales market."

Mica has been developing and designing for several years, involving conversations with participants in different countries and industries. Ostrovskis notes that the implementation of MICA must be adjusted in countries where there is already a regulatory framework for the cryptocurrency industry.

Janet Ho, the current head of policy for EU countries at Chainanalysis, believes that mica finally lies in several elements. First of all, we must have a comprehensive understanding of the need for legislation, and then give strong feedback to some of the contents of the document and rewrite it:

"the law is not an immutable process," he said. There doesn't have to be a perfect regulation. We all know that verification and optimization are possible.

Ho proposed that the European Commission check the implementation of the responsibility and identify feedback from government regulators and industry participants, as well as the basic hazards of mica.

Hubert de Vopland, a partner at Kramer Chammers Naftalis Frankel, is a consultant on due process in Europe and France in areas such as Internet finance, social economics and digital payments. it also provides something to think about.

Dvoran is particularly concerned about the harm of mica to the current cryptocurrency and Web3 laws and regulations of special EU countries:

"some countries, such as France, have local requirements. The most important thing is to know that such policies and regulations may fade and may disappear.

Dvorpland also stressed that the irreplaceable dynamic password (NFT) and decentralized Finance (Defi) products and platforms that are not included in the MICA document at this stage and a relatively new industry situation are likely to once again fall under special national legal jurisdiction:

"this means that there is no place to regulate, which is covered by mica, especially the definition of data assets."

Nadia Filali, director of the Caisse des D é p ô ts Group blockchain project, explained the importance of the joint efforts of government departments, regulators and industry participants, and cited regulatory trends in France as an example:

"for me, this requirement is likely to be conducive to independent innovation and the development of this technology."

Oslowski remains convinced that the European Commission brings a good balance of regulatory parameters to one aspect of the cryptocurrency ecosystem and makes it easier to block development in other areas:

"thus providing a sound regulatory framework for many thematic activities in the encrypted asset ecosystem, while we all have this central finance (CeFi) indoor space, which will remain unregulated to some extent."

Ostrovskis notes that CeFi and Defi are industries that the European Commission expects to promote innovation, allowing new ideas to be tested along with regional trends:

"the scale of such activities is still limited, which also has some characteristics that enable us to ignore it temporarily, for example, before they are likely to seriously endanger financial security."

The final online vote on mica regulations in EU countries will be held in April 2023. Because of technical issues related to the translation of the document into the 24 declared language disciplines of the European Community, a final decision is scheduled to be made by law in January 2023.