MiCA AMA: What Happens Next?

Transcript

and Grace please feel free to take it away the floor is yours thank you I hope everyone can hear me well I'm not sure what your quality was headphones I hope it works can you hear me well great uh can we uh thank you for the introduction with all the practicalities I I missed the first minutes I I couldn't join them so um have you already presented the topic today just uh to announce it or not yet not yet so we have not yet okay so we were heading straight into the markets and crypto assets regulation a lot was already told about

it over the past months or even a year and that's from the April 20th we finally know what we stand on with this topic um and I mean a lot of considerations were not necessarily uh very pragmatic so we hope to thanks to our speakers today uh dive a bit more into the practicalities of it um may I kindly ask for the speakers to introduce themselves today so the audience knows exactly who will they have the pleasure out of listening to maybe all the speakers online yet yes I can I can take the leader if you

want and guys so um uh I've been um I've been working at the regulator Cinema for years I've been a chief compliance Europe for academic streets I have my loaf um in Luxembourg and in Geneva and specialized in cryptos so I have some formal vast also that in French now from cassp that are really impacted by media so happy to discuss with you guys today about the impact of media especially in Switzerland who's next

maybe I can go next happy to be here thanks and guess I'm Hannah I work with 21 analytics we are a travel resolution provider I am the responsible for all girlfriend Forts and also regulate every regulatory engagement so we are participating in the fhf v8g calls and uh all some working groups and open initiatives for the solving of the travel rule which is a big Challenge and we are out of Zouk so yeah our main topic of interest is is the travel rule but also of course every regulation on top of crypto assets

uh relate to it and it's interesting to us happy to be here nice to have you and we have Julian are all um so I'm Julian I actually work for you hot lab I would say that the the Salient point I can't bring to this panel is the fact that I work for a company right now that is affected both by the Swiss and by Mika so we are currently in the double transition period I'm a sort of split split split person half of me in Switzerland half of me dealing with Mika so I would say I can't bring the

Practical points of the current and possibly future problems or benefits that we can see from this uh from this nice transition this will be definitely interesting what will be the impact on this picture uh What happens with meccano who wants to jump first and that's one sorry I think there was some delay with your question and grass I don't know if it was only for me but if you can repeat it uh so the question was what is the

impact of the regulation on perfectly status entities and projects that are running in Switzerland hear about this regulation um concretely when do they need to to bother and dive into it no I would say that uh yeah so Mika now I think it's important before we dive into Mika I understand a little bit of where it comes from and the what it entails um it is I would say structure it in covering

issuing of crypto assets crypto asset service providers and putting some governance and requirements for those uh two types of operations and I would say that projects for coins that are already running if they want to be offering that for EU citizens they would need to be licensed in one of the jurisdictions and that's already one of the requirements that were not there and uh [Music] and it maybe maybe to go back a little bit to understanding where does this come from I think Mika comes from well this main stablecoin projects

initiation with Libra starting back in 2017 if I'm not mistaken and they were a little bit uh worried about how that would impact the the official traditional currencies so that's one important point that we need to keep in mind why the regulation is drafted as it is and how it focused a lot on stable coins and issuing of those of those crypto assets not only to protect customers but also to protect the the whole financial market so I would say that projects that are already running everywhere they need to well comply with the regulations the uh

the requirements that Mika passes with a a lot more transparency and capital requirements and all government governance requirements then are already in place in other countries and maybe yeah I would uh say also that cusps needs a lot more of oversight than they have had before and it also defines a lot more of how the operation needs to go and in the 27 countries that make up the EU maybe anyone else wants to jump on that can I want to you want to go on and then

again I can complete if you want I mean no please people go ahead I mean yes just please please go ahead as it is guys I think the most important thing is to think that media is a dedicated regulation for most of the the crypto catching up and catching all uh regulations so basically you had in the uni feed deposit prospectus afmd for funds and so on and that was already running and then um as it was clearly well explained by Anna there have been a lot of discussions and so on and then you have to you have

a Mika version that tries to catch everything at a certain point of time and I can bet you a beautiful champagne butter that you're gonna have a Mika 2 already in in a couple of months so basically if you are doing a utility token but forget the the qualification in Switzerland like really at large exchange um payment token and so on you are issuing offering trading offering other services that are quite related to financial services like Stu's execution Asset Management then you're falling to Mica and the the impact will be clearly and I think we're going

to speak about that afterwards and Christ I'm not sure where you want to talk about it is the impact on Switzerland so typically um I don't want to to really speak about it but I I think about cost Innovations Rebirth of course they are quite impacts in Switzerland this will be just the next question yeah yeah I know I know but this is quite related because it's difficult to explain where we are sure fit in maybe look I went public already a bit on this um on this uh maybe some of you followed on the mylington post probably I don't know

I've seen a lot of views and everything but I already went public on this once and I will reiterate it here for the audience I've been in the regulation in the regulatory space both as legal counsel internal and external into in in projects of crypto for the last six to seven years now believe it or not even though they say it's a new industry it's not as new as people might think and I've said it before and I'll reiterate it again fear uncertainty doubt it is the always the same comment three things that people used to mention about crypto years ago we used to see fear towards the industry because they did not

understand what crypto was they did not understand the players behind the behind cryptocurrencies this brought uncertainty because if ever in anything in any aspect in life if something is new people are scared of it people are uncertain of what it can do and there was the doubt factor that comes with this to play Mika and for any regulation for that matter is important because it gives at least the persons behind it be it service providers or issuers a root a guide which can gain a bit of trust or at least help the industry gain a bit of trust in this scenario

with regards to with regards to crypto assets and service providers in the end rules are important but we need to also factor into mind that it is also the players and the and the people who are involved in the industry that need to follow those rules um I cannot stress at the point enough as to imagine a scenario probably I'm going to put this to the panelists at imagine a scenario where we had a sort of where the US had a Mika regulation before this FTX problem happened the scenario would have unfolded a bit differently if rules were set already at the time probably there weren't so as

many problems as created themselves as would have created themselves right now so I'm hoping that the at least in this matter in Europe within the EU these rules can help at least guide both clients and service providers to at least having a common goal at least to safeguarding the interest of the client because um it's only with these kind of rules that that we can actually move forward and that the industry can mature um as a sort of side topic Mika inspired itself a lot from the method regulation I'm sure I don't know

I'm sure where people is very familiar with this with this and I'm sure um it was it is evidently clear at face value as soon as you open the first page as you realize this is a me this is heavily based on method meaning it shouldn't be something new out of the box that we've never heard of there are already set standards which need to be followed that's my take on this first question at least and I think you inspired a question that I want to drop here uh from um from the chats will this attract projects that already issue tokens into the new despite willing to complain and I think you you kind of touched upon it

by saying this at least gives the impression of some more trust because there is a regulation there are some standards so maybe this would be like a first point if you or other pennants want to elaborate on that and I just also want to drop another element uh to build on that what about reverse solicitation um so with regards to the issuer point to the issue a point look I am I am mostly focused right now on the service provider aspect on the issue points of view um in my opinion there's still a bit of a gray area as to how X countries so

issuers coming from outside Europe will affect the market and how they need to comply um the rules are set it's just in practice I'm not sure but that is something I would maybe leave for someone else to add to to to address from the panel with regards to reverse again I'm a firm believer that we are not Reinventing the wheel for service providers this is not a wheel reinvention let us look at the more traditional models in Switzerland every bank that operates within the EU has its own subsidiary inside the EU there's a sort of pyramid structure this

can be the same model that we adopt for crypto and to and to our benefit at least in Switzerland because I forgot to mention at least our headquarters are based in lausanne we already have a sort of framework to fix on with the ls Fin and the finial which is something which we can already base ourselves on to to look into Mika as well so it's not something new with regards to solicitation look the reverse solicitation it's always a great a gray area as always I believe that at least from an EU level with with the Swiss with with a Swiss operational

entity and with one EU Branch or subsidiary you can already solicit the greater part of the all the EU based on the passporting and on having and on having the Swiss entity it's just uh what goes beyond that then which needs to be answered what goes outside the the scope of Europe maybe where you want to jump on that yes and on the other impact for the universe you're right Junior and the river solicitation that is mentioned explaining in the in Nikia is actually is developed with the same context as

mefeed so for those who have been in the financial industry and know that and if it is the same soliciting marketing formatting this is the the three virus the reverse solicitation actually is quite uh something that is burning at the moment with uh let me save us at the moment I'm not Casper so not about uh but about the vast in general those who have developed a nap on eBay and Android news that reverse solicitation is quite burning at the moment I've been I've reporting quite a lot of vast at the moment about answering to April whether you are

soliciting each country at the moment because Apple doesn't make any difference between uh if u words are getting EU or if you are actually targeting this country this country this country and the 27 countries so the discussion about reverse qualification at the moment is a Hot Topic um and the position that um typically the IMF or Baffin has provided and for don't forget the ethnicity the directive which means that actually there is a transposition low for each country which means that each country has already quite a lot of position regarding each time the river

solicited him um you have the same position and you can use the same position more or less with the the vasp industry and with the crypto assets the not a huge game changer however for Switzerland it's still the same position which is not the best and as Julian said um you have two consideration whether you want to build a business on reverse solicitation or do you want to specifically solicit promotes Market the you and then it's going to be fun to see what else must come because the position on asthma for solicitation for reverse

solicitation have been quite restrictive in the past so typically this is where we're gonna see in crypto is even worse um you may have seen today the um the interview from saying that the first two things that they are going to speak today is about stable coins stability and crypto assets that's fantastic so we'll see how how this develop but don't forget it's a political thing which means that if you take the the um this was also something you spoke trillion before

um if you take the political view and if you take the recital and Mika there is some somewhere mentioning that there is an international um I don't I don't have the wording especially but you need all the EU country needs to have an international effort to promote Nica convergence through uh BCPS Basel community fetf and the third one I I forget so typically FSB of course FSB so typically this is going to be is Mika is going to be the only regulation in EU that's not

our problem our problem is that maybe Nika is going to be promoted by 27 countries to begin to become the next stand out that's another question and maybe maybe just no maybe just to add because I thought there was a question uh on the chat uh yeah there will be guidance from isma uh I think in one and a half years uh after entering to force which means uh one and a half years plus one month because it probably enters in fourth in June um Mika but also just uh one small point is that uh not all

as as Julian brought up Pika is ready and it's done but it's far from perfect and people also mentioned that we will probably see uh follow-up regulation on that because it of course this is a result of a snapshot of the present right that the for instance taking and all of that is not covered uh but uh they are very clear on Mika that uh it's in it's uh the service provider or the issue responsibility to check if what they're providing is covered in Mika and if not that doesn't mean that they don't have the requirements they must uh they probably can be covered by other type of

regulations uh already present in the EU which can also be um binding for for those yeah maybe this brings me to our next question and I'm gonna drop a practical example what do we do with d Phi and Mika because and the next question will then what's the impact on the intro that Switzerland may have so as a jurisdiction because if everyone because of the white scope of reverse solicitation how is interpreted needs to comply with anyways why you would still why would you still come to Switzerland at the end um so how maybe D5 is the the only one that could still be interested in uh in Switzerland what's the take on that

who wants to jump first look if I may I'm going to just maybe drop a small bombshell D5 I I I don't I cannot understand how this aspect of Swiss law has has been sort of underestimated maybe my interpretation was not always on point on it but maybe it's something which people are overlooking which is there is a section regarding the Cooperative which is the companies in The Cooperative which are which is heavily underestimated and the structure of a Cooperative is literally everyone

pooling in their resources to create a cooperation the more classical business models would be the coup the Negro they did even and you have to look into the more financial industry you can see the Rafa eisenbank which is basically a Cooperative in itself this could be a basis for Swiss companies in my opinion maybe it's a radical approach maybe it's something which was examined and was might not have been accepted but I believe that Switzerland has a lot of potential on the on the D5 sphere even because there are company structures which allow for it to be catered on some level now again

we need to also see the approach of being more with regards to these to these matters but um at a pure basis I think switzerlanders would be welcoming for this type of project because in the end the the decentralization that what it is what is it is what decentralization is now to what extent can something really be decentralized we can stay here till tomorrow morning discussing it but I think on that on that on that tiny point I think Switzerland does have some attractiveness on that level maybe a concrete example of uh I have realized the white paper uh needs to indicate a phone number and an email

address to contact people I'm not sure most DFI protocols will insert a number that people can reach out to ask questions so how do you handle that so it's thank you for that input who else wants to add something on that maybe just to add because I heard from Peter kirstens who was like one of the persons driving Mika and ideating it from the beginning and uh he mentioned that they still don't know how to regularly fight they are open to to ideas on how to regulate defy that he goes to sleep and wakes up trying to come up with ways to relatify and Mika does cover well the the decentralizing name only or

yeah you it doesn't matter if you call yourself decentralized um if you're not and there is a company behind then you are subject to the regulation and you need to be on top of it it doesn't matter if you are trying to escape from from that only because that's uh yeah a marketing approach or the way that it's it's uh set up but uh maybe on how it impacts Switzerland and how it makes it more attractive I think there is a a kind of trade-off there right because as we mentioned the passporting um yeah if I am a on a project and want to to be able to well Market it to a bigger to a bigger Market with less

effort then you probably want to be within Mika and licensed and registered within uh one of the 27 member countries right which um is benefits for having Mika but also if there is no if you are decentralized uh if we're talking about defy and the Mika regulation is all and the AML regulation is also based on entities and focused on entities and if there is no entity then you're not regulated then you have no certainty so that's a bit of uh yeah the the way that it is right now with Mika I think for D5 then there is a lot more

of uncertainty than uh um for other types of cusps yeah if I may look guys you know from the Practical point of view um you have 12 months 18 months okay they have to go together and decide which country is going to be the less attractive in EU to receive the third parties uh request and so on it's going to be a message to be honest

um there is an advantage in Switzerland and and I see and I clearly see it already with the AMF going from a registration to authorization the way that it goes in informed how Luxembourg is actually looking a little bit uh backward and and checking what is going on so everybody is looking on what's going on um at the moment so this is actually where Switzerland has always had its uh its strength the qualification of token hasn't changed since 2018 okay um we have we have an approach in

Switzerland where you want to do asset management okay you want to do with financial instruments or do you want to do with with crypto how do you want to set it up you take the usual um and you apply it so it's not like it's rocket science sorry and guys so I myself as well because we should we I should better as better the lawyers but it's not like it's a it's a rocket science it uh laws that are applicable in Switzerland okay it's crypto it's a little bit more complicated but we have uh framework that is stable that is certain we can

work with the regulator and believe me in some countries in the EU it's not possible uh just try to go in bedroom try to go in Spain sorry for the guys who are in located maybe here during the final but it's uh it's kind of challenging so we are talking about other regulation that for sure is going to be complicated if you really want to Market in the EU and then you need to organize but if you are considering something worldwide you want to uh have your business running now you have your business running now you have worldwide clients

you have um I don't see something that is happening tomorrow definitely not so yeah for sure it's a it's a good thing and it has an impact especially for domiciled clients at EU the missile clients but I would not say it's a it's amazing impact it's something that comes uh from time to time and to be organized and Define your business model and maybe evolve your business model but not necessarily right now this is how I share this with clients in in the EU even in the EU I'm not speaking about Switzerland even in the

EU I like the example you came for abortion because the fsma they published guidelines on how to categorize tokens on the end of last year whilst in Switzerland indeed it's been since 2018 and when we think about it the regulation sets new standards for crypto assets but it does not help to draw the line between what is a crypto assets and which category and what is a financial instrument this is still left there so if we hesitate and we're borderline between those two well we don't get any additional guidance on that right so that's an interesting point if you want some certainty as to what is your token and you believe that your borderline between financial instruments

and just the crypto assets and you hesitate between which regulation you're supposed to be subject to maybe reaching out to Switzerland is still interesting um let's maybe shift quickly to AML and the travel rule because this is also a very important topic right in terms of regulations and how will this all work out I know how that she had a lot of things to say on that no maybe just to start I think it's important to mention that uh yeah AML all the email regulation is to um coming up the mlr and the package that they are preparing and it will be

well complete email right it is it is mentioned in because in various places and uh Mika doesn't doesn't do any AML whatsoever and um but travel rule was best with Mika right it was a kind of a harsh rushed from the rest of the ml regulation and from our talks with the policy advisors they mentioned the yeah travel rule was a little bit more important and Urgent to be passed and that's why they uh brought it together with Mika and it's approved and will be also in application within yeah in the

beginning of 2025. what I think is important to mention is that the travel rule in the EU doesn't differ a lot from the the one in Switzerland which is which are very strict ones so the travel um from the fhf recommendations they have opened uh to to to countries to Define on thresholds for instance Switzerland has no threshold every transfer of crypto assets between cusps need to be compliant with the travel Rule and that became the same just now with the recent uh modifications that they did when

approving the law just on the April 20th so in the EU it's the same travel rule applies from one Euro every transaction between costs need to to comply with the travel Rule and they require a little bit more of information than Switzerland Switzerland only asks for us account number if I'm not mistaken and the EU will also ask for your wallet address and um yeah some some more information on the on the physical address as well of the customer foreign is a little bit more strict uh with the travel rule is when it with regards to unhosted wallets so

self-hosted wallets the private wallets are also in scope of the travel rule of course because otherwise you're living in a loophole right you can just avoid the travel rule if you're transferring from a cast to cusp you just transfer from a custom hosted wallet and then from that unhosted wallet to another cusp congratulations you avoid you avoided the travel obligations as a customer and uh from that perspective of regulations have included a hosted wallets uh within scope of the travel Rule and in Switzerland every transaction involving a hosted wallet requires uh ownership proof of the wallet from what that does that mean if I'm trying

to withdraw my money from a cusp then that cusp we need to verify that I own that with that wallet before allowing me to transfer there uh that it's not the same in the EU um although you need to identify who is on on the other side of the transaction when you're transferring to a non-hosted wallet as a cusp you only need to prove ownership uh uh above 1000 Euros of of worth of the transaction so that's one thing that uh Switzerland is a little bit stricter but if I well it's a personal opinion if I could say that how I imagine that would

will play out in practice as travel rule is a very um two-sided game right you have you need to collaborate with a vast on the other side of the world or wherever they are with their own regulations with their in their jurisdiction I would say that in the end the strictest requirements will be the ones um applied uh more or in more volume because being in Switzerland and and if you are transacting to a company that to with a company that is not on up on a travel regulated country let's say someone yeah Brazil that hasn't have any

any regulations in on the Travel rule the cusp in Switzerland they cannot transact if the other the other cusp on the other jurisdiction doesn't play the game so that's uh one thing that I imagine will happen in practice and that's also one uh of the reasons I believe that EU have um has gone to to the threshold of nothing right the first uh first Euro you are already subject to the travel rule they mentioned that crypto has this um International nature and that therefore they shouldn't uh differentiate transactions within the the

EU or outside and I think that's correct but um yeah they they took out any threshold and they are going very similar to to Switzerland in that regard you want to add on that no I I cannot agree more on on the general point that in fact it is it is a cost collaborating with Casp exercise it will be problematic if if there's no General collaboration from the ecosystem it's already it's already I'm thinking from a practical point of view it's already

difficult to keep up with the fragmented fragmented rules and this ties up with Biba's intervention earlier for the other question with fragmented rules and fragment fragmented standards it's not going to work guys let me tell you imagine the situation in Switzerland where we currently obviously Swiss companies currently operate on a general standard it could be for the TFR it could be for anything else with the video and online identification circular of finma which is very pragmatic very straightforward it tells you what it needs to be done what can be done what cannot be done I cannot right now imagine a situation where these standards would be applied across the board in Europe and

reciprocal receipt and the reciprocity from the EU countries to apply these type of Standards or to accept these um I cannot imagine this scenario without having a uniform document between all 27 countries to actually get this done you know it's very it's it's very fragment and so it's already complicated to get the online identification point so the basic kyc and due diligence points to get them all compliant within every country it's already a headache for operationally um and it's a lot of work a lot of manual work operationally just to get it right for every country

imagine now we have to add the tf4 level without having at least cooperation between us so the appeal would be simple we're in this together it's required there's no way of going getting out of it so yes I would obviously encourage one thing from Regulators at least to be in the sense pragmatic and to identify that c5s c5s and CD files can be the actual tool to help you identify clients and transactions and to verify everything the fact that we sort of c5s and defies our c5s and C diffis are obliged to actually do identification and verification is something which can

actually help promote the rule itself so they used to be also or maybe awareness of how it happens operationally what can be done operationally what can be achieved the best efforts level and to apply that standard across the board within the EU as well in order to be able to distribute to get to be compliant thank you maybe before I start looking a bit more into the question that were dropped into a child so far um if I summarize correctly well we what we said so far if you have a complex model you're not sure how to categorize

the token whether it's Financial instrument or not and there's no obvious marketing because for whatever reason you're just a VIP you don't have an app on the App Store you don't want to reach out actively to users Switzerland may be interesting if you want to reassure users because you want to show that you're complying with some standards it's by just having utility token the new regulation may be attracting people a lot because it's a way of having the stamp of hey I'm like a compliance it looks good then if you're anywhere in amongst a thousand shades of decentralization meaning you're not fully decentralized fully disinterminated as the regulation wants

you to to be to avoid those regulations then as well maybe Switzerland is an interesting place to end up but having all those restrictions in terms of reversal citation in mind is this a good summary so far of of what was discussed or do you want to add anything to that otherwise I'm going to quickly just scroll yeah just just one thing of the IML I thought when I heard Anna I didn't think before it's just so there is um uh use book about the travel the travel rule has a specific application especially for payments uh for cap in general is going to be the EML

and the AML guys is quite a heavily um at the moment discussed it in dialogue so it's not even even a dialogue negotiation is a process afterwards to discuss at the EU level so I'm not speaking about media but I'm speaking about the ml so the ml packaging and the eu's division there are negotiations and we are heading to several things in the discussion that is not in GTA 5 because TFR has been published it's not in Mika because the it's adopted um it's about the fact that nfts are

should be under amscft requirements that Darwin defies are considered to be maybe in the IMs CFT requirements but also something that is impacting you and all the finance typically that um the threshold to identify would not be 25 percent but maybe around 50 percent someone spoke about 10 percent at the moment so there are discussions about that which will also impact the whole the whole framework so the you see the interconnection as it is in Switzerland actually uh between the the financial um regulation in general and the

specific regulation for pocket to assets okay um just take my words as a temporary because there are negotiations in the moment so it's it's quite political we will need to have a follow-up update event once this is uh this is finalized amongst the questions there's one that seems also a good way of wrapping things up it's um it does make a regulation put an unfair advantage on EU companies comparing to the regulation standard in Switzerland I think this was more or less answer during the conversation but who would want to take that one uh and provide a more clear answer experts in Switzerland lead that one

we have two expert trillion villa which one who has a take on that one an unfair Advantage for you companies comparing to the regulation standards I wouldn't think so to be honest from my experience to date the reason um drives I think in as a as a crypto community in the sense that there's a lot of crypto companies within the ecosystem is the regulatory certainty it already has an advantage since 2017 and before to be honest they started actually

modeling the guide the Ico guidelines the stablecoin guidelines and then the DLT act came to follow the fdfd the the federal Council the LT report came in 2018 so there was a lot of days was a certainty um so I wouldn't think that there is an unfair Advantage for EU companies honestly because um this the space is already established in Switzerland I think now the established companies in Switzerland want to actually jump into jump into the the EU tweak a bit a couple of things because to be very honest the industry standards are already close to Mika or if they're not

close to me because they copied off which is which was transposed which in Switzerland turned out to be finaafinsa so a lot of crypto companies already sort of modeled themselves a bit on the fincy Affinia from from what I've seen in the industry so now just take that model jump it jump into the EU and you're pretty much set to go in my opinion but you know opinions are there to be challenged Yvette do you have a different take on that one yeah I don't I it's um okay we are here to speak about ninja and Switzerland and so on Fair Advantage for one or the other I think it's

actually complementary it depends on the clients you are marketing and on your business model you want to really Market the EU Market it's like gdpr it's gdpr uh something that is unfair compared to to the to the DPA in Switzerland I don't think we are targeting the same same people so your customer your base customer is in the U.S in the EU fine but if it's worldwide because it's decentralized then yeah yeah it's I don't think it's an unfair Advantage for EU campaign companies and it's not a non-fair Advantage for Switzerland it's how you set up your business model and then you adapt

if it's not an unfair Advantage could it still be negatively impacting somehow it will impact like it has impacting the past the financial the financial industry like it's still impacts the banks uh coming from the regulator I was there when it was all the discussion about Market access it and no it's not a surprise that most of the Swiss bank has a has a presence in lacks in front of in in Frankfurt I mean that's because you need to add these Banks the one that in the EU have the most marching and have the

most uh uh benefits no probably not but they are here because they need to serve the the EU client then maybe from that's a very practical example um we got a question leading to would it make it easier for projects like Liberty and now to pull their old concept up to the drawer and start issuing such coins again in Europe if you mean for regulatory certainty exactly probably probably because it well they are very clear on what uh a stablecoin issuer

needs to to do and they even go as far as basing most of the regulation on the different aspects of of a stablecoin so they there is the EMTs and our Arts um EMTs would be like the one that is packed to only one single currency official currency and the art would be where Libra would fall into it's more like a basket of Commodities or a baskets of Commodities combined with uh official currency or any combination of those so yeah they are very clear on what you need to do what which type of capital do you need to have um what does the white paper need to

entire uh what type of governance this issuer needs to have in place uh what is uh okay requirements for for people to be involved in leading those those projects Etc all of those is is quite clear on for stablecoin issuer so I think that would make it easier what do you guys think maybe put together the other opinions I'm just going to add a Twist to the question if someone has a stablecoin project is it then a best the best choice just to run straight away uh to Europe and then rely on this Clarity or is it still

interesting maybe just to rely on the rules that exist in Switzerland for that then it becomes political in my opinion I agree with people not political in an EU Sense on a global level um I cannot imagine how the outtake will be of having a huge influx of U.S dollars stable coins going to Europe without the the without even the FED sayings having something to say about the foods I I it's very it's too political launching of the project I think it's possible I think it's possible but again we're counter for these type of projects

you can't restrict yourself only to Europe the world has globalized the the core itself of blockchain is to be decentralized on a global scale so even if they do launch it at an EU Europe level from a philosophical argument I would say that you can't stop there and they need to already be aware of what needs to be done on a global scale you know what is your take on that um the influence of it stablecoin is kind of tricky and still in Switzerland most of you probably knows how difficult if you you thought about issuing a stable coin

um if it's a payment okay and if it's a deposit okay and if it's uh it's uh securities you have uh you have requirements and you have requirements in terms of capital liquidity so Switzerland does not have and that's not a surprise why you don't have that much of a CH supercoin is because the requirements of finma are quite restrictive at the moment so not sure here um there would be something as an Heritage in Switzerland unless there is the position of Cinema evolutes and growth group I will go sorry um but on the other side as Julian said

a stable coin that is offered in EU like a Euro stablecoin a jbp they were going in Europe is going to be tricky um however um they are talking now the ideimf about the cdbc this past days um so I'm pretty sure that would be interesting to see in this term want to grab some kind of Contours so um I think we are just in the in the very beginning of the discussions and and and and and well we didn't hear about the central Bankers these past years doesn't mean that actually we

heard about two years ago then we don't hear about them I'm pretty sure we will hear about them very soon to be honest okay I was scrolling for the chat just to see if anyone the connection has a last question for those last five minutes I think I think we have someone with a raised red hand and grass swear yes thank you very much so I I jotted down my question into the chat already so looking at Mika as Lex Libra How likely is it yeah that someone like DM who has basically developed this

whole thing and was what a few days before launch uh it pulls their old concept out of the draw and immediately issues a stable coin in Europe does Mika in your view enable that support that or does Mika prevent that I believe this is the question we took just yeah we wrapped up now definitely it's not it's not prohibited it is uh actually in scope of the regulation yeah it's helpful and it's inspired the regulation I I would say so if I summarize what was said just before is definitely it helps and then

to be verified whether it only helps just to have it in Switzerland or maybe if so there's some interest in having those kind of projects sorry in in Europe or having them in Switzerland um is there anyone else also with questions still or hasn't satisfied the Curiosity of everyone let's see other I don't think so should we consider it as a rep any closing remarks from you maybe it starts looking start looking in

start looking into compliance with American TFR it's got me it's not going away unfortunately for most and yeah there's a lot to be done and I imagine even if your life looking at licensing and get registered in other jurisdictions uh most of the regulations will be at least inspired and and matching what uh this huge political block has put out Viva any closing remarks on your side actually I think definitely uh you you need to to just

look at your I told before look at your business model check if you need to actually adapt your streams so compliance for sure risk um and your your target market and if your target markets are the EU I just look at how you're gonna develop that Julius what is your final take on that firstly First Take second take third take it's not a one week exercise it's not a one week exercise I'm telling you from now it's from our experience from my experience personally right now it's

it's a long-term project so do not underestimate it from a Time point of view for sure because it's it could also mean redefining company cultures on some levels especially in the industry so it's it's a chunky exercise let's say don't don't advertise in the EU if you're not ready for it and it may take some time yeah I was like thanks to all of you for joining and sharing your insights and um to everyone for going to listen to us today don't hesitate to to reach out and continue the conversation on LinkedIn

and our other videos where apparently some of you are quite active I I've pointed out that you you had this post that you advertised earlier Julian where you express yourself on the topic on LinkedIn this was Julie know that I have to check that out it's uh believe me it's it's a it was it was painful enough when they were revising the text many single times and I'm like listen you know we're tired of being fragmented please just give us a standard let's just go there and when they got there I mean yeah you know everyone was like yeah we're not sure we're not sure but yeah come on guys it's it's about time it's about time it is well thanks again for everyone for

joining um and I guess it's a wrap thank you guys thank you thank you so much bye thank you