Beyond MiCA - Regulation Put in Practice | European Blockchain Convention 9

[Music] 3 2 1 [Music] go good morning everyone so I will try to do my best uh just uh not to be extremely boring and I will do it uh extremely practical one I am a CEO of the one of the biggest crypto exchanges in the Central and Eastern Europe zunda crypto so we'll discuss a little bit about MAA today so it's a very sexy thing for these days and it's something that all of us would like to know something about is it a good solution or bad solution I cannot answer this question because last time when we metet here there was a panel discussion between us and there was a quite a lot of attendance and most of them they were very happy with M and I was the only one who was saying it's a wishful thinking so I still think it is a wishful thinking but it's the best wishful thinking in the world I will try to explain why so we've got only 10 minutes so it's not a let's say a lot of time to discuss so complicated issues as M but you have got here some information how it was delivered so European commission is a extremely slowly and it took a l long time to produce this kind of low but it's already delivered so we should be happy because Europe becomes more and more crypto-friendly of course there is a huge amount of disadvantages of this regulation but still we are let's say um maybe not a crypto heaven but the place where something is regulated I would like to Mark something which is extremely different from the other regulations which is travel rule nobody knows how it works for example in Estonia we have got this kind of Regulation we are regulated in Estonia and we have got the travel rule so again wishful thinking what does it mean it means that crypto becomes non Anonymous anymore because if you want to exchange anything with virtual asset service provider or the crypto exchange you need to deliver all of your kyc informations so if I'm accepting crypto that you already sent I must be sure that it's that that's you from the technological point of view it's extremely difficult and that's the wishful thinking and that shows that The Regulators who created the MAA then they have nothing in common with crypto in my opinion because in practice of course we've got this kind of rule but in practice how can we fulfill the ru those rules all over the world but according to Mika we need to focus on it and we need to find a solution so that's the point that I'm only marking here but it's quite quite reasonable here just a the package of course we we have got 10 minutes so we cannot focus on all over all of those regulations but you shall just to find out DLT pilot regime mik and Dora all of them they are concentrated on a financial stability and there is a huge huge package so the impact for all the virtual asset service providers is rather concentrated on those three uh bills not only on M so that's something I recommend to have a look on so main objects why we are here and why M what MAA is going to deliver first of all legal certainity it's the most important issue from the part practical point of view we are the V virtual asset service provided Provider from Estonia with a very high level license and we are strictly regulated and we we cannot develop business as fast as our competitors all all over the world without license now it will change there will be a legal framework all over the Europe that will be equal to the whole European Union of course it's again wishful thinking because if you compare Regulators from Poland which are for example extremely Crypt unfriendly and Regulators from Estonia there will still be crypto-friendly so in my opinion not the um the the the officers in the regulatory uh office offices will not change they will still love crypto or or hate it so for sure we will have in European Union the places where crypto will be very friendly accepted and the places when it will be completely unaccepted and MAA will not change it but the huge Advantage is that we will have the universal uh rules all over Europe so of course there is a financial stability it means that when you as a customer becomes a customer of vual asset service provider at Europe you can be sure that this vasp has been checked and regulated by the super visory not as it happens today for example if you compare the licenses from Estonia uh Lithuania Czech Republic Slovakia all all over the the Europe they are completely different and there are completely different um necessary documents that you need to fulfill and uh there is no Universal rule maika is going to change it uh of course European commission and European Union Was preparing this regulation for a very very long period uh so it only applies to utility tokens asset link tokens and tokens that are electronic money or tokens that are IM money so these three objects are regulated by m here is the definition of uh of uh crypto assets of of course everyone has a different MAA has got like this but it's not so so important so what is quite important that most of the activities will and services will be regulated by MAA so even for example crypto advisory will be regulated by m and you will need to obtain a license which is provided by the by one one of the European Union states by uh the regulatory there is of course like a crypto exchanges um there is a custody and all their stuff is being regulated by m so Frankly Speaking if you have got anything in common with crypto you will be regulated but by Mika and you will need to obtain a license according to Mika so what is quite important there will be a universal European register of the companies which has got the license doesn't matter in which uh which country but in one of the members of the state so you will be able to check if the partner that you are Co going to cooperate with is having this kind of uh license so the the the companies which are not registered in European Union will not be able to provide services here here you have got a uh let's say the basic information how the uh application should look like and what the applicant uh should fulfill what are the rules of course there will be a lot of uh additional implementation rules uh in the uh in the European countries but there is a universal schedule for the information that need to be provided so uh of course there is a three month period during which we shall receive the license in practice it will be much much much longer for example we obtained the highest possible license in Estonia and according to the law it was going to take three months it took two years so that is how it works so it will be the practice it's again wishful thinking none of the regulatory will provide you the license in 3 months it's not possible there is of course a lot of additional possibilities ad administrative rules that are providing the possibility to prolong this period till the end of the world so still it will be very very complicated more and more complicated to get this kind of license so so of course uh there is a lot lot of it um requirements that all of the applicants need to fulfill so at the end of the day only the big companies with a huge uh amount of money that are able to invest will be able to obtain the M license there is there is no place for the small start startups in my opinion it's brings a lot a lot of problems to deliver this kind of a risk assessment it uh Solutions and all the stuff that MAA requires so of course we will be a crypto heaven but only for a very big very uh let's say specialized companies for me as a CEO of the one of the biggest exchanges with 1 million customers is a very good opportunity because we are ready we all already did it but for startups it's a completely disaster you will not be able to fulfill all those rules so again it is wishful thinking but it's a little bit of a monopolistic way of create creating the market so of course there is a a lot of other uh things that you need to deliver if that you need to protect the customers so the customers are the main object of the protection in European Union so that shows that there is a lot lot lot of additional requirements that are again wishful thinking protecting the the the customers on the crypto Market of course preparation of Mika to took so long that MAA doesn't cover nft some of people say that nft is dying so maybe it's good that European Union didn't didn't regulated it defi is completely not regulated and Central Bank digital money which is sexy thing now it's not regulated in Europe anymore so so far so another thing that we need to concentrate on when we say that maika is so perfect solution it's p perfect solution only in a small part of the market so what maika uh means in practice we have got some answers and questions here but the the main answer everyone asks when uh uh someone comes and want to have a interview with me they always ask if we will have a MAA will there be a FTX collapse that's the question that I ever had of course it will be because MAA will not close this kind of cheaters Steelers rubbers if you prepare the best let's say regulatory framework it will not eliminate the people who want to rap you so MAA is not a perfect solution for everything it doesn't mean that in Europe we will not have a bankruptcy or whatever of course we will have of course this regulations brings a lot of more regulations that concentrate on people but it will not uh let's say close the market from these kind of people there is of course a lot of challenges I have already mentioned and most of the challenges I are related to the investment in the IT solutions because all the virtual asset service providers will need to challenge a lot lot lot of more rules which are based on a it uh development which is extremely expensive of course uh what is the main benefit the main benefit is a un Universal legal framework which means that we will have one regulation all over the Europe implemented that the by the members of the state so it's something which is unique and it's something what we need to work on and we need to concentrate on and abroad we can we can present as the as the the the most important advantage of maika we have got a unique Universal regulation not perfect but the one that no one has uh for us at the end of the day is that challenge Frankly Speaking not we are already prepared for MAA because our Estonian regulation is much much more strict than Mika rules but we know how difficult it is and how much money time and concentration of the whole team you need to spend to get the license in Estonia there was more than 1,000 licenses now there is only 18 high quality LIC licenses and one of those we possess as the big biggest crypto exchange if someone ask me if I will try to obtain this license once more I cannot answer yes or no because it was so difficult that I believe that MAA will be similar one so I just presented you some advantages and disadvantages of course 10 10 minutes is not a time to have a deeply analyz but more or less you know what we shall concentrate on and if you have any questions of course I'm here if you want to to receive this presentation of course I am open to do thank you so much and I wish you a very very pleasant and fruitful convention thank you