How the MiCA regulation and Travel Rule will change the use of crypto assets in the Financial Sector
After a long period of debate, the EU has approved the MiCA regulation, focused on the blockchain sector and cryptoassets in the EU, and the Travel Rule. This is another step in the digital revolution of the sector, making digital finance available to European consumers and businesses.
The world of virtual assets has turned into a fierce game of chess. New criminal practices may be emerging, but legal frameworks are developing further and technology opens up new resources for combating crime.
They sprang into existence as part of the technological utopia of a parallel economy unfettered by states and central banks. They have now become diversified, sophisticated and command share prices high enough to warrant high potential value. For that reason, there are efforts within both the European Commission and national financial institutions to create a legal framework that will at last lay solid ground rules in this field.
They can be stolen, forged and even eliminated from the file systems where they are stored. Such are NFTs, those certificates of authenticity for digital assets for which enormous amounts are being paid in some cases. Ensuring their security is both a nightmare and a marvellous opportunity.