This element of opinion on the regulation of digital assets comes Max Heinzle, CEO of 21xEU has regulated the exchange of digital assets
The United States sends a powerful signal to the world: digital assets are there to stay. This growing enthusiasm, led by the new administration, is certainly a welcome development. However, while we are celebrating this embrace of innovation, I think we must also recognize the crucial role of regulations in the safeguarding of investors and long -term health insurance of this growing industry.
Change winds blow through Washington. With him, a wave of cryptographic zeal, led by appointing Paul Atkins to the dry and by appointing David Sacks like the cryptographic tsar of the White House. An executive decree reporting support to industry by the new American president, Donald Trump – now a real defender of the opportunities offered by the crypto – also cement the impression that the United States is ready to adopt it with open arms open . At the same time, all signs are there that, while the United States kisses the crypto, it will also move to a more relaxed regulatory environment.
It is important to remember that if cryptocurrencies dominate media titles and conversations for dinner, they actually represent only one piece of the universe of expanding digital assets. The real revolution lies in the tokenization of traditional assets such as actions, obligations, real estate and even intellectual property. This represents a paradigm change in finance, with the potential to unlock thousands of dollars of value and to democratize access to investment opportunities. Even Larry Fink, CEO of Blackrock, the largest asset manager in the world, recognizes this potential, declaring that tokenization could “democratize the investment in a way that we cannot imagine”.
Thus, while the transformer potential of the crypto and – more importantly – the digital assets, is established, its full potential can only be carried out in a secure and regulated environment. Institutional investors – The key to unlock this future – require confidence and clarity. They need to ensure that their investments are protected and that the market works with integrity. This is where the European regulatory framework, led by the European Securities and Markets Authority (ESMA), shines.
ESMA played a decisive role in the development of a robust regulatory framework for digital assets, including the pilot regime of the great revolutionary distributed book (DLT pilot regime). This scheme allows tests and the development of DLT -based market infrastructure in a controlled environment, promoting innovation while guaranteeing compliance with existing financial regulations. 21x worked tirelessly to meet the strict DLT pilot regime requirements and, in doing so, will become the first company to receive an EU license to exploit an entirely regulated digital asset exchange. When we launch our 21x exchange in the spring, this historic achievement will demonstrate the effectiveness of a regulatory approach which promotes innovation while ensuring the protection of investors and the integrity of the market.
The other EU regulations of the Mica (Crypto-Asets), which are based on the foundations laid down by the DLT pilot diet, provide a complete framework for the entire digital asset ecosystem, not just Crypto-monnaies. By establishing clear rules for the issue, trade and custody of digital assets, Mica promotes confidence and transparency, attracting institutional capital and paving the way for mass adoption. This is aligned with the Fink call to the dry to “quickly approve the tokenization of obligations and actions”, recognizing the need for regulatory clarity to propel this innovation in the long term.
The regulations are crucial to treat the perceived systemic risks associated with digital assets. The interdependence of the digital asset market with traditional finance increases rapidly. Unregulated markets could potentially constitute a threat to financial stability. The proactive approach of Europe to regulations attenuate these risks by promoting responsible innovation and ensuring that cryptographic activities are subject to appropriate monitoring.
Of course, finding the right balance is essential. Too heavy regulations could indeed suffocate innovation and keep businesses away. However, the European approach does not consist in stifling growth; It is a question of creating a lasting ecosystem. By providing clear rules and directives, regulators give companies confidence to invest and innovate, knowing that they operate in a clear legal framework.
The argument that a “light touch” approach will attract more investments is short. Although this can lead to a temporary increase in speculative activity, this ultimately undermines the long -term health of the industry. A lack of regulation generates uncertainty and risk, which will dissuade institutional investors and will hinder the wider adoption of digital assets.
The recent 21x license testifies to the viability of this approach. It demonstrates that regulations and innovation can coexist and that compliance can be a competitive advantage. By adopting the regulations, Europe is positioning itself as a world leader in the space of digital assets, attracting responsible players and promotes a sustainable ecosystem for the future.
While the United States can embrace crypto with enthusiasm, the attention of Europe on complete regulations, led by ESMA, is the most cautious approach and the scam. By establishing a clear and secure framework for the entire digital asset ecosystem, Europe not only protects investors, but also throws the basics of a future where token workers revolutionize the world of finance. This commitment to responsible innovation, echoing the feelings of industry leaders like Larry Fink, will ultimately lead to greater adoption and unlock a vast economic potential.
The United States shows signs that it could trace its own course, in the meantime, Europe’s commitment to a regulated digital market and the cryptography market is the right way to follow. Regulations are not the enemy of innovation; It is the basis of sustainable growth and general public adoption.
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