- IOTA Foundation is progressing with IOTA 2.0 and Shimmer network development, which is attracting new projects due to its regulatory alignment.
- IOTA is collaborating with European lawmakers for compliance with upcoming MiCA regulations, broadening its reach in regions like the UAE.
The IOTA Foundation is robustly advancing the development of its IOTA 2.0 architecture, in parallel elevating the Shimmer network. What’s noteworthy about IOTA’s progress is its harmonization with regulatory norms, a crucial factor drawing new projects into its ecosystem. As per IOTA co-founder Dominik Scheiner’s recent discourse on Discord, IOTA stands primed for global adoption, staunchly abiding by regulatory guidelines.
Scheiner revealed an encouraging dialogue with an institutional DeFi project expressing interest in building on IOTA. This interest stems primarily from IOTA’s robust regulatory alignment, thereby setting it apart as a unique European Layer 1 solution. The IOTA Foundation is actively pushing the implementation of the IOTA 2.0 framework, aiming for full decentralization of its node software.
Simultaneously, they’ve proposed to the European Parliament for establishing regulations aimed at preventing money laundering and terrorism financing through digital asset usage.
The proposal advocates for substantial changes to reconcile discrepancies among various regulations concerning fund transfers, crypto assets, and anti-money laundering procedures. In May, the European Union officially sanctioned a new regulation called Markets in Crypto Assets (MiCA), expected to come into effect in the coming weeks upon its publication in the official journal of the European Union.
MiCA aims to license cryptocurrency exchanges and wallet providers, thereby enabling their operation across all 27 EU member nations. It will also impose the requirement of maintaining adequate reserves on stablecoin issuers. These stipulations are predicted to be implemented within 12 to 18 months from the regulation’s enforcement.
The MiCA proposal, introduced by the European Commission in 2020, stirred some controversy during discussions, particularly regarding rules concerning environmental impact that could affect Bitcoin’s proof-of-work technology.
In response to these developments, IOTA is actively partnering with European lawmakers to assure compliance with MiCA. Moreover, they are expanding their influence in regions like the UAE, thereby promoting Internet of Things (IoT) and decentralized finance (DeFi) activities.
Like their counterparts across the European Union, German crypto investors and entrepreneurs are keenly awaiting the Act’s implementation, following an 18-month transition period. While some provisions of the Act with significant modifications are already in place, the response from the German crypto industry has been overwhelmingly positive. The Digital Association, or “Bitkom”, praised the regulation as a considerable achievement, pointing out that Europe is spearheading the establishment of global standards for cryptocurrency regulation.
They believe the MiCA regulation will foster a level playing field for crypto service providers throughout Europe, consequently cultivating trust in the industry.
