TechFlow news, October 23 — According to Cryptonews, Tom Kiddle, co-founder of Palisade and former Ripple executive, shared insights on the EU's MiCA crypto-asset regulation during the Digital Commonwealth Mansion House summit. Kiddle believes that while MiCA provides much-needed transparency and guidelines for the crypto industry, the regulatory framework is far from perfect.
Kiddle highlighted MiCA’s key achievements, including introducing traditional financial governance principles into the crypto space, requiring crypto service providers to establish robust governance and risk management frameworks, and adopting a risk-based regulatory approach that differentiates oversight across various types of crypto assets.
However, Kiddle also pointed out several shortcomings in MiCA:
- Regulation of NFTs and DeFi remains in a gray area, lacking clear definitions.
- Inadequate consumer education leaves retail investors potentially unable to fully understand the risks involved.
- The quality and clarity of disclosure documents such as whitepapers need improvement.
Kiddle predicted that a potential future MiCA II could expand its regulatory scope to cover DeFi, NFTs, and metaverse-related tokens; enhance cross-jurisdictional cooperation, particularly with major regions like the U.S. and Asia; and address money laundering and sanctions evasion risks arising from geopolitical tensions.
