Hey all, hope you’ve been doing well. After long consideration I’ve decided to return to the forum. Main reason for returning is the ongoing regulations and I wanted to start a conversation about the MiCa that’s expected in Europe within 2 years.
MiCa is an upcoming license for crypto, something brokers/exchanges have to comply with going into the future. There are a few things in the MiCa license that caught my attention:
Exchanges/brokers are not allowed to have any privacy coins on their platform
Exchanges/brokers can only transfer funds from and to exchange related addresses.
Coins listed on the exchanges/brokers should have a CO2 footprint report & whitepaper available on their platforms
There are probably a few more concerning things within these regulatory requirements. I was wondering if the Maidsafe team is aware of the upcoming MiCa license and if so, how do you expect this to impact the project / tradability of MAID (and maybe even eMAID?).
“The rules do not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf.” Source: europarl.europa.eu
Guess a truly decentralized exchange that is peer-to-peer has full legal ground to continue without any effort. This could mean that Safetokens could be easily accessible if certain bridges are build to all the various DEX protocols.
There is still time since it only becomes operational end 2024.
“MiCA will be fully applicable as of 30 December 2024. This means that CASPs wishing to operate on the Dutch (and European) crypto market must have a MiCA license from that point onwards.”
There are always new things to navigate, and navigate them we will, but we don’t anticipate an impact for SNT for launch either.
Although I don’t quite know how they expect CO2 data on a new layer1 at launch (and one that enables storage utility) but we’ll likely do pretty well vs the alternatives there.
coming in hot with a single post new user id and making bold statements , at least warrants for double checking, linking to reliable or primary source of information and independent review possibility of facts and claims made therein? please do post your sources you are referring to, be it other news sites, legislative texts, lawmaker proposals and whatnot. thanks.
My bad, I should’ve uploaded my profile picture before posting. I forget that people recognize me by it, instead of my name. Jokes aside, I’ve been on these forums for years, requested my account to be removed over a year ago and decided to come back now (same name). I assumed most of the people here would still remember me to not require an introduction post. But I can see that for some this might come of a bit weird. I do however think that not much effort is required to find a ton of information about MiCa and that you could’ve assumed that this is not just a bold statement.
I do think it will effect MAID much, and MAID in particular. One can only assume that exchanges will start to prepare for MiCa somewhere Q2/Q3 2024. It is already during the application for a MiCa license that exchanges will have to conform to regulatory requirements. One can only expect that if Bittrex is applying for a license (which I’m not sure they will), they will somewhere down the line have to delist privacy coins. Now we all hope that by that time we’re no longer trading MAID but Safecoin, I do think it’s still a bit to early for that to be realistic. One can question if MAID will be seen as a privacy coin as right now it is still an omni asset which is far from private. The project however will definitely be seen as privacy related.
I do believe these are things that can easily be overcome, especially with a strong emphasis on DEX’s. However, I do believe it is important to not be caught of-guard by these regulatory changes.
Some quick thoughts from someone with no idea about MiCa;
Point 1 could possibly be addressed by using a compatible blockchain with atomic swaps so that SNT could be swapped between a private data unit and a public blockchain version of SNT (effectively wrapped SNT in a non-private token), which could be traded on compliant exchanges… depending on how ‘privacy coin’ is defined. Making the MAID/eMAID to SNT swap 2-way forever via some DEX mechanism would work for this.
Point 2 might seriously increase DEX usage. If all compliant exchanges and brokers could only transfer to other compliant exchanges and brokers, how would people ever get their tokens/coins to private wallets? If never, then people will use DEXs, non-compliant, or overseas exchanges instead, making compliance a very small issue for MAID or any other decentralisation focused project. If tokens can be sent to private addresses somehow, then this is also not an issue.
Point 3 should be easy enough, again depending on details. Once node efficiency is known, the data should be available to provide accurate estimates based on assumed network growth etc. As Jim said, the network should be very good in terms of energy efficiency.
So, in my mind 3 seems easy, 1 seems manageable, and if 2 is a serious problem, MiCa will become largely irrelevant to decentralised projects / assets, as compliant exchanges will be no-go zones.
, at least warrants for double checking, linking to reliable or primary source of information and independent review possibility of facts and claims made therein? please do post your sources you are referring to, be it other news sites, legislative texts, lawmaker proposals and whatnot. thanks.