Swarm co-founder says MiCA anchors Europe as the leader of a new global crypto era

The crypto space has largely been accused of a lack of clear governing rules which have made it difficult even for countries to regulate it. However, Europe seems to be on track to becoming the first region to craft harmonized crypto regulations after the European Parliament passed the Markets in Crypto-Assets Act (MiCA).

According to Philipp Pieper, the co-founder of Ethereum-based DeFi lending platform Swarm, “a new era for global crypto has begun and Europe, for a change, has just become the leading innovator in the industry.”

Clear guidelines for crypto businesses in the European market

While some argue that the MiCA regulations miss out on some important aspects of the crypto space including decentralized finance (DeFi), crypto lending, or crypto staking, and nonfungible tokens (NFTs), Pieper believes “MiCA regulation has created clear and unambiguous guidelines.”

Commenting about the passing of the MiCA regulation, Pieper stated:

“The passing of the MiCA regulation has created clear and unambiguous guidelines for crypto companies across the European market. It will play an important role in putting Europe ahead of the rest of the world as an established blockchain hub. There is no question that it expects a lot from the industry and not everything will work the same as it has in the past. But that’s part of the story of growing up, especially in an industry that will be the next generation of financial markets for all assets. Our industry peers from other countries are looking with interest how the European industry can now continue to build and innovate on the basis of regulatory confidence”

Swarm’s stand on crypto regulation

Being the only regulated BaFin DeFi platform and a member of Germany’s Digital Finance Forum, Swam has been at the forefront of recognizing the inevitability of regulations.

BaFin regulation places Swarm at an advantage with MiCA now becoming a certainty.

Swarm believes the implementation of MiCA is a positive step for EU-based companies since it provides a clear framework to operate in. The regulation will also add more security for crypto investors ensuring they won’t be left helpless when crypto-related companies collapse due to bad practices.