With the EU now introducing MiCA — the most comprehensive financial regulation since MiFID II — fears of “unregulated crypto” should be history. But the Financial Supervisory Authority is still repeating old warnings, as if nothing has changed. Christian Ander, CEO of BTCX, believes it is high time for the authorities to change their approach: from portraying crypto as a systemic risk to acknowledging that the industry has actually taken responsibility and put in place important protections. In this blog post, he explains why MiCA is changing the rules of the game for Europe's crypto market and why the rhetoric of the authorities needs to be updated as well.
Christian Ander, Bio Christian Ander is the CEO of the Swedish crypto exchange BTCX and founder of Goobit AB. As one of Europe's earliest Bitcoin entrepreneurs, he has played a key role in the development of the Nordic crypto industry since the launch of Sweden's first bitcoin exchanger in 2012. During his career, Christian has advised industry associations and been instrumental in regulatory discussions on digital assets and blockchain technology. He is a recognized pioneer in European Bitcoin and blockchain and actively engages in work for responsible crypto adoption.
On October 9, the Financial Supervisory Authority issued a warning highlighting once again the risks of crypto assets — despite the fact that the EU's new regulatory framework, MiCA, is now being introduced to precisely address these risks.
It is both unfortunate and misleading that the agency continues to communicate about crypto using the same rhetoric that was used before the regulatory framework even existed. MiCA is the most comprehensive financial regulation introduced in the EU since MiFID II. It is tailored to crypto services and provides investors with protection that is in several respects equivalent to what already applies in the traditional stock market.
Of course, investing in crypto assets involves a certain amount of risk. So do stocks, mutual funds and real estate -- especially at a time of uncertain economic activity, inflation and geopolitical turmoil. The difference is that the crypto industry has now started to take responsibility by seek permits, impose controls, and comply with uniform European rules.
Here are some concrete examples of how MiCA is changing the conditions for investors:
This means that the crypto market is now getting the same requirement for transparency, accountability and customer protection Like the rest of the financial sector. The difference is no longer structure -- but just history.
Moreover, it is incorrect to describe volatility as a cryptospecific phenomenon. Small-company stocks, biotech and growth companies might as well swing 30-40 percent in a day -- sometimes more. And unlike some crypto projects, many of these listed companies have limited liquidity and poorer disclosure.
We should definitely talk about risks. But we should talk about them in a way that is relevant, proportionate and up-to-date. MiCA gives us a framework on which to build trust -- but it also requires regulators to update their rhetoric and their view of the industry.
Bitcoin is now in its 17th year of continuous operation. It is the best-performing asset in modern financial history. With the right regulation and the right actors, it is quite possible to offer crypto services with the same level of transparency and security as in other parts of the financial system.
It's time for government agencies to stop generalizing about “crypto” — and instead start talking about regulated crypto.