Opinion: MiCA Opens Europe a Window of Opportunity Amid US Uncertainty

The introduction of a unified regulatory framework in the EU will pave the way for the mass adoption of cryptocurrencies that the industry has awaited for years. This view was expressed to ForkLog by the developers of the crypto-payment processing solution WhiteFlo

In May 2023 the Council of the European Union unanimously approved a draft regulation governing the crypto-asset market (MiCA). The document requires companies to obtain a licence to operate in the EU, and for stablecoin issuers to maintain reserve backing.

“It seems that cryptocurrencies in Europe will finally gain the mass adoption the industry has waited for all these years. The new regulation will resolve the issues related to operating at the interface between fiat and crypto. The latter will become a normal asset, so banks will be able to provide their services to crypto investors,” commented a WhiteFlo representative.

The importance of regulatory clarity becomes particularly evident against the backdrop of regulatory uncertainty in the United States.

According to the WhiteFlo team, Europe has opened a window of opportunity to attract large American crypto firms. For example, Bakkt is already considering expanding its business in Europe, and Circle has filed applications for licences in France.

“Beyond foreign crypto projects, the new regulatory framework will attract companies that were previously skeptical of the sector due to gaps in regulation,” say WhiteFlo analysts.

According to them, the legalisation of cryptocurrencies will increase the industry’s potential, spur the creation of new business models in the crypto-payments space, and attract new users to the market.

“In the near term, infrastructure businesses that process crypto-asset transactions will become more in demand. Our platform provides ready-made software for such projects: building software for crypto-processing and the exchange of digital assets takes only a few weeks. Now is the right moment to test new services ahead of market growth,”

WhiteFlo — this is a modular white-label solution for companies that process cryptocurrency transactions. The project’s ecosystem includes a B2B wallet, exchange, merchant accounts, crypto-processing and a gateway for purchasing digital assets with fiat money.

The developer of the platform — the fintech company AXIOMA — supplies WhiteFlo on an on-premises basis under a perpetual licence with the ability to tailor and customise to clients’ needs.

Earlier ForkLog published a piece about how MiCA will change the tracking of cryptocurrency transfers in the EU.