EU cryptocurrency regulation is hindered by regulatory flaws in various countries

PANews reported on June 12 that according to Barron's magazine, the first EU cryptocurrency regulation MiCA aims to unify supervision, but the implementation differences between member states have caused companies to take advantage of the situation. The regulations require service providers to be licensed to operate legally in the EU, and must meet standards such as anti-money laundering, anti-terrorism financing, and IT security. After obtaining the license, they can operate in the entire EU market, prompting companies to seek "loose" authorization from member states. Crypto experts say that regulators in most MiCA licensed countries such as Germany and the Netherlands have high integrity, but countries such as Malta are accused of issuing licenses hastily before the collective standards are officially implemented. The chairman of the French Financial Markets Administration said that some products entered the market with MiCA's "passport", but approval was hasty. EU securities regulator ESMA has launched a "peer review" of a member state.

Crypto platforms OKX and Gemini chose it as their destination because Malta accepted applications earlier. France has only just issued the first MiCA license, and it is accused of being long and complicated. Some lawyers say that "cheap approval" damages the reputation of a company and is expensive to obtain licensing, which may be difficult for many companies to complete. If the EU's supervision is not effective, European crypto companies may be replaced by companies in the United States, Dubai and other places, which may also cause economic sovereignty issues.

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