Regulation as seen by the crypto-currency industry – Adan x Cryptoast
Against the backdrop of the ongoing European trilogies, Adan – in partnership with Cryptoast, the crypto-asset media outlet – has launched a series of videos entitled “Regulation as seen by the crypto sector”.
In six thematic episodes, the objectives of these videos are – by giving the floor to the main stakeholders, the crypto companies – to explain to the European institutions and the industry the main concerns and issues of the current regulatory debates on the draft Markets in Crypto-Assets (MiCA) regulation and the revision of the Fund Transfer Regulation (FTR), and to propose concrete solutions and alternative measures in order to build an effective regulation that is conducive to the development of innovation in Europe and by Europe.
Find Adan’s positions on MiCA and TFR.
Episode 1: MiCA and decentralized finance
The MiCA regulation was devised to regulate the players of the new “intermediated” finance built through crypto-assets. As decentralized finance (DeFi) has grown exponentially in recent years, Europe is considering subjecting it to MiCA. However, both because this would be too early and especially because MiCA rules are absolutely not adapted for DeFi, Adan and its members remind the contours of this new open finance and the need not to rush: the supervision of DeFi is a long-term reflection to be conducted in cooperation with the sector in order to define a new regulatory paradigm totally innovative and compatible with the flourishing of these new uses.
Testimonials from Marc Zeller of the Aave protocol, Pablo Veyrat of the Angle protocol and Romain Figuereo of the Paladin protocol. Interviews conducted by Valentin Demé from Cryptoast. Conclusion by Adan.
Episode 3: The revision of the Remittance Regulation, what impact for NSPs?
The revision of the Money Transfer Regulation (MTR) implies the extension of its scope of application to crypto-asset transfers and digital asset service providers. In addition to the difficulties and threats in terms of sovereignty related to the lack of European technical solutions for the secure and privacy-friendly exchange of information on crypto transactions, Adan and its members question the current approach that fails to take advantage of unique technological opportunities for the fight against money laundering and terrorist financing: adapting TFR to the world of crypto-assets is essential for an effective regulation in terms of its objectives and the development of the industry.
Testimonials from Simon Douyer of Aplo (ex- Sheeldmarket), Élodie Trevillot of Delubac & Compagnie, Rija Rameloarison of Just Mining and Pierre Gérard of Scorechain. Interviews conducted by Valentin Demé of Cryptoast. Conclusion by Adan.
Episode 4: MiCA is not for non-fungible tokens (NFT)
Inspired by the MiFID 2 regime, MiCA is a regulation for the “financial” uses of crypto-assets. With the rich news they generate, non-fungible tokens (NFTs) have attracted the attention of European institutions to the point of questioning their inclusion in the scope of MiCA. However, NFTs – a technological concept above all – are not (all) financial assets. Adan and its members explain the different use cases (notably non-financial) that NFTs can have and the risks of considering them as a homogeneous asset class in a regulatory context.
Testimonials from Frédéric Montagnon of Arianee and Quentin de Beauchesne of Ownest. Interviews conducted by Valentin Demé from Cryptoast. Conclusion by Adan.
Episode 5: MiCA, what consequences for PSANs?
Largely inspired by French licensing, MiCA establishes a harmonized framework for digital asset service providers. While restoring a level playing field in Europe is good news, some of the provisions worry the industry and threaten European competitiveness. Adan and its members call for more progressiveness, proportionality and pragmatism in order not to hinder the development of new crypto-asset markets in Europe, and the future champions that will guarantee our digital sovereignty.
Testimonials from Simon Douyer of Aplo (formerly Sheeldmarket), Nicolas Louvet of Coinhouse and Coinhouse Custody Services, Rija Rameloarison of Just Mining and Mark Kepeneghian of Kriptown. Interviews conducted by Valentin Demé of Cryptoast. Conclusion by Adan.
Episode 6: TFR and unhosted wallets
The latest developments in the European debates have led to the consideration of requiring the identification of unhosted wallet holders interacting with digital asset service providers as part of the traceability requirements for crypto-asset transfers, and this for any transaction regardless of the amount. Adan and its members recall that this provision – stricter than for traditional fund transfers – is unenforceable, and that a copy-paste of the traditional regulation is not suitable. On the contrary, the new tools developed on blockchain technologies offer new opportunities to be more efficient in the fight against financial crime, while preserving the privacy of honest users.
Testimonials from Nicolas Louvet of Coinhouse and Coinhouse Custody Services, Pascal Gauthier of Ledger and Florian Le Goff of Synaps. Interviews conducted by Valentin Demé from Cryptoast. Conclusion by Adan.
Episode 7: MiCA, mining and the environmental issue
As part of the ongoing debate, it is proposed to integrate mining into the European Taxonomy and to subject crypto-asset issuers and service providers to information requirements on the environmental impact of these assets. Adan and its members recall the opportunities of mining for the environmental objectives of the European Union, the importance of having a French and European industry that carries these objectives within our borders, and the need to have relevant and therefore realistic obligations.
Testimonials from Thomas Charbonnel of BBGS, Alexandre Teinturier and Maxime Chery of Mètis and Youssef El Manssouri of Sesterce. Interviews conducted by Valentin Demé from Cryptoast. Conclusion by Adan.