French MP Knafo: MiCa regulation 'penalizes Europeans'

In an op-ed for Cointelegraph, Mike Sarvodaya, founder of the Galactica Network, noted issues with the exclusion of decentralized finance (DeFi) in MiCA due to its central role in the crypto ecosystem. He highlighted concerns about the "Travel Rule," which requires crypto service providers to identify both senders and recipients for transactions exceeding 1,000 euros. Sarvodaya suggested this could lead to excessive surveillance. He also warned that requiring official approval before launching tokens or liquidity might stifle innovation and cause delays.

The Autorité des Marchés Financiers (AMF) explained that MiCA regulation mandates crypto-asset service providers (CASPs) to obtain authorization before offering services. They can do so by getting approval from national authorities or notifying them if already authorized under specific statutes. CASPs demonstrating prior compliance with national laws can continue operations until July 1, 2026, while awaiting MiCA authorization. The regulation imposes obligations on CASPs including incorporation requirements, governance standards, client asset protection measures, and complaints handling procedures. CASPs must also adhere to prudential standards and maintain business continuity plans while complying with anti-money laundering and cybersecurity regulations.

Knafo serves as a French MP for Reconquête and vice president of the ENS group in the European Parliament. She is part of the ITRE Committee on Industry, Research, and Energy as well as delegations for relations with Maghreb countries and the Union for the Mediterranean.