The Banking Executive Magazine - May Issue

MICA - 4 June 2021 European Data Protection Supervi- sor opinion. - 30 June 2022 Provisional agreement reached be- tween European Parliament and Council. - 20 April 2023 Plenary vote by the European Par- liament. - The entry into application of the Markets in Cryptoassets regulation was initially expected by mid- 2023. However, it is delayed to end of 2024 (at the latest). IMPACT ON INNOVATION AND GROWTH IN EUROPE The European market has been served by regulated and licensed e- money tokens (EMTs) since 2019. The paper by Jón Helgi Egilsson at University of Iceland argues that MiCA weakens the current legisla- tion by fragmentation, increases fi- nancial instability, and appears to prioritize banks' interests over foster- ing innovation and growth in the Eu- ropean Union (EU). Protecting banks' interests may hinder innovation, limit opportunities for positive societal im- pact, and raise antitrust questions. Blockchain technology and e-money tokens have made it possible to by- pass intermediaries such as banks for digital payments and fund storage. Europe has a competitive advantage in e-money for blockchains thanks to its well-designed technically neutral legal framework for issuing e-money. MiCA includes also a regulation for e-money tokens. According to Jón Helgi Egilsson, MiCA fragments the legal framework ISSUE 173 MAY 2023 the BANKING EXECUTIVE 11