Expert: changes in the legislative framework will simplify the work of crypto projects in the EU

Binance top manager Martin Brunko is confident that the change in the legal framework will simplify the work of crypto projects in the EU. The expert believes that currently, the supervision of the crypto industry in Europe is too fragmented.

There are various regulatory regimes in place in 27 countries. The authorities of some have created restrictions for projects related to digital assets, while in others there is simply no regulation. As a result, exchanges need time and money to ensure full compliance with the requirements of regulators in different jurisdictions.

Brunco believes that in such a position, it will be more difficult for smaller industry participants to expand their presence in Europe. Therefore, they do not need to fear the adoption of MiCA, as this will help create a new standard of regulation.

Even early-stage crypto startups benefit from new initiatives as they can focus on growth rather than regulatory compliance.

“The use of MiCA is good news for every cryptocurrency company in the EU because they will be able to operate literally in a single market. This simplifies business scaling and significantly reduces the cost of interacting with regulators,” said Binance’s top manager.

Against the background of Binance’s withdrawal from investments in FTX, Roman Nekrasov, co-founder of the ENCRY Foundation, said that the current market should not be regarded as a plan by Binance to destroy FTX and Alameda Research.

“However, I willingly believe in Binance’s desire to pull the blanket over itself, and increase the share of its BUSD token in the market due to the fact that many investors in a panic will start entering stablecoins,” he said.

Nekrasov believes that turbulence during this time can be “very uncomfortable”, especially for newcomers to the cryptocurrency market who did not catch 2014 or 2018.

“Turbulence is not only a fall down, but also sharp, poorly predicted surges in prices. So, within a few weeks, we may well see a panic sale, and then the purchase of cheaper assets by more optimistic investors,” Nekrasov explained.