In short
- The EU threatens to become a “flyover zone” because the regulatory approach to crypto is surpassed by the US and APAC, said an Exec at asset manager Franklin Templeton.
- While Mica placed the EU in the “Voorvoi” of crypto regulations, it threatens to fall back as the areas of law come forward with more flexible approaches to digital assets, Catriona Kellas of Franklin Templeton argued.
- The EU asks “the right questions”, with “more than whispering” about an update from Mica.
The EU threatens to become a “flyover zone” for crypto if the pace of legislation lags behind the US and Asia, according to a director of Asset Management Firm Franklin Templeton.
Speaking at the Digiassets 2025 conference, the international legal lead of the company for digital projects, Catriona Kellas, argued that although Europe is in a ‘strong place’, there are ensure that it could become a viaduct zone between the US and Asia ‘.
She praised the ‘energy that comes from the United States’, which offers an energy boost in Europe.
“There is a real risk with this technology that jurisdictions that were perhaps in the foreground a few years ago – it is so easy to fall behind if it takes a long time to go through your legislative process,” she said, pointing to “other areas of law” with more flexible approaches of the crypto sector.
The European Commission seems to be acquainted, she said, remembering a recent conversation in which “they said a word that I had never heard them say before, what” competition “was.”
“They definitely ask the right questions,” said Kellas, adding that there are “more than whispering” around “Mica 2”, an update of the markets in the legislation of Crypto assets that came into force in June 2023. “It is absolutely, potentially coming,” she added, and somewhat her bets.
Kellas also marked the EU’s DLT or distributed ledger technology, pilot regime. It is intended to offer crypto companies a sandbox to work, while supervisors observe how things come out. It has only been in force for a year, but trying to “renovate and ensure that it is suitable for the goal.”
Mica 2 incoming?
In the midst of “healthy energy that comes from Europe”, Kaye suggested that concern that Mica 2 could prove to be more restrictive “, because we see that some of Europe is looking at what is going on in the US and what is going on in APAC.”
The crypto industry is not round; Reports have shown this week that Crypto exchanges Coinbase and Gemini subject to operational licenses in Luxembourg and Malta respectively, so that they would be able to work in the 27 Member States of the EU.
Some EU supervisors have reportedly expressed their concern about the rapid pace of “passport” approvals in some areas of law, which prevent the EU states from blocking crypto-asset service providers or CASPs as soon as they have a permit to work in one state.
As the global acceptance of digital assets is more deep -rooted, Kaye expected an “institutional posture change” among supervisors and legislators around the world. “It is quite difficult to put that in the box again and go back to a more risk -aging approach,” she said.
Looking at the enforcement of the regulations, she added: “We think of that gentle regulatory approach that you know can be just as challenging to choose as what is on the page.”
Kaye increasingly suggested: “What we really see is that supervisors are challenged by their governments, who are challenged by their leaders to make that change, and not only to think in the box that they are always presented.”
Published by Stacy Elliott.
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