After hosting a panel discussion, "Crypto Regulation Unveiled: Exploring MiCA's Global Impact," at the FIBE Fintech Festival in Berlin, I've caught myself thinking that everybody is not so excited about MiCA regulations. Will it become that magic wand to address current hurdles holding back the global adoption of blockchain and crypto assets? — I very much doubt it. However, it will definitely open new opportunities for existing companies and businesses with new business models. Let's dive in.

Admittedly, the Markets in Crypto Assets Regulation is a comprehensive framework that has the potential to make the future of financial operations well-ordered, with digital assets in it. However, startups and small industry players still own the responsibility and primary role here. They are expected and forced to become the drivers of those changes. 

For startups, MiCA becomes a complicator, not a problem-solver, since to become MiCA-compliant, business owners must:

• Do the paperwork related to compliance with AML requirements and ESMA's tech characteristics.

• Prepare many policies and processes, including a Complaint Handling Policy, Internal Control System, Conflict of Interest Policy, Business Continuity Plan, Execution Policy, and more.

• Introduce new business models and increase requirements for operating activity.

• Integrate new technologies to make all the operations smooth, reliable, and secure.

I won't mention endless tests, reviews, and optimizations. Meanwhile, all those processes require human resources, time, and capital expenditures that most companies don't have. Consequently, small businesses willing to drive the changes, build the future of financial operations, and improve financial inclusion end up in a stalemate caused by a regulation initially aimed at solving that. 

Panel participant Sandra Leonie Ritter, Co-Founder & CEO at Leondrino, highlighted an important point: startups must do a lot to comply with regulations, as MiCA will add to the workload here. But they will inevitably do that. European startups are eager to do business with others, be legitimate, and raise funding. It is no secret that companies that work according to the legislation are more likely to raise funding.

A heated discussion at the conference made us seek solutions for European companies to break the stalemate and live happily ever after with MiCA. Obviously, the Markets in Crypto Assets Regulation will give rise to the next generation of businesses and business models to help companies overcome these challenges by creating new legal and technological solutions. 

I personally believe that such products as the DCM Platform solve those challenges by seamlessly integrating into existing financial systems. It allows companies to unlock the benefits of MiCA's successful adoption and use the full potential of blockchain in payments, asset liquidity, and interoperability. Finally, such next-gen solutions eliminate the need to tie up capital in custom development and infrastructure tech endeavors, accelerating their time to value. 

Another option panel participant, Dr. Nina-Luisa Siedler, Lawyer at Siedler Legal, pointed to is the rise of white-label services offered by new industry players and law agencies to make it easier for companies to comply with new regulations. These companies provide consulting services related to policies and processes, so when it comes to tech implementations, most choices and integrations are still made on the startup's side. That's an example of the development of the market that strives to bring innovations and unites to face the challenges in partnerships. 

She has also emphasized the importance of issues related to the liability of the company and the founder for the product that is regulated according to MiCA. For some businesses, yes, such a level of liability is crucial, but blockchain and cryptocurrencies are broad technological concepts, and many business models should not be regulated so heavily.

I think that's harmful to startups or challenging projects within big companies. How can we speak about openness for innovation where there is so much unknown ahead, where there are many hypotheses, and often it's impossible to be sure about something? Meanwhile, the regulator requires specificity to avoid any liability and prosecution.

But despite all those difficulties and unfavorable circumstances waiting for us ahead, MiCA is long-awaited and much-needed for the future of financial services and payments in particular. Traditional banking operations we are so used to haven't been done overnight, either. Meanwhile, the emergence of such regulations already means that more banks, financial companies, and other businesses will be eager to work with blockchain and crypto assets. The fact that stablecoins have already become rails for payments once again proves that. Nevertheless, with such talks, community, professionals, technologies, and products like DCM, I believe that we will overcome the challenges and stride toward better markets and innovations.