Fischer Bálint on MiCA – Portfolio Financial IT 2023

Bálint Fischer, Dorsum’s Business Development Director, gave a presentation on the European Union’s MiCA regulation and the business opportunities it entails at Portfolio Financial IT 2023 conference.

Read the translated version of the summery article below:

“In the second section of the Portfolio Financial IT 2023 conference, Bálint Fischer, Business Development Director at Dorsum, spoke about the business opportunities created by the European Union’s MiCA regulation. The main message was that the regulation is already here, and it is time for the stakeholders to find the use cases that can provide significant financial benefits.

When it comes to regulation, not just technologies emerging, we have arrived and we are not just seeing the “hype fog” in the story, Fischer expressed.

MiCA regulates not just cryptocurrencies but also the broader range of use cases for distributed ledger technology. In 2023, globally, 425 million people had investments in digital assets, which represents a 36 percent annual growth. 17 percent of the European population had or currently has some form of cryptocurrency investment, while in Hungary, this figure is 14 percent.

The MiCA has arrived, and it must be incorporated into local regulations. One part of the directive is the DLT Pilot Regime, which can bring the next generation of securities. This is still a sandbox regulation, and suitable use cases will gradually emerge. The MiCA regulation will come into effect in the second quarter of 2024, and its essence is that it will provide the opportunity to treat crypto-based investment instruments as regulated financial assets.

The entire financial infrastructure is on the verge of a massive transformation, and soon the securities issuance process will be completely tokenized. Currently, it is possible to issue securities across borders with an EU license, but this is not a simple process. However, with tokens, it will be much simpler and faster.

Cryptocurrencies are typically purchased by customers on foreign-registered exchanges or unregulated financial companies. However, with MiCA, it becomes possible to invest in cryptocurrencies through banking institutions as well.

It would be beneficial to implement this, as there is a consensus that well-diversified portfolios should already include crypto assets.

For corporate clients, it is also a significant regulation because if someone wants to make a payment in cryptocurrency for an online purchase, it is still a cumbersome process. The involved stakeholders need to accept the change, understand the regulations, recognize the business opportunities that MiCA opens up, and take the first steps.”

Original article: (Hungarian content)

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