Since the European Union’s Markets in Crypto-Assets (MiCA) regulation became law in April 2023, crypto compliance has become an essential consideration for crypto companies. And it could be the key to making crypto something that everyone embraces.
Having worked as a compliance officer in traditional finance for ten years, Oumou Ba closely took a close interest in crypto when clients started coming to her with questions.
“I’m enthusiastic about new technology and this is a new approach to finance,” she told Silicon Luxembourg, adding: “I began looking into blockchain and its history. Cryptography, the basis of blockchain, has been used since WWII and it’s only recently that we decided to adapt it to finance!”
Ba, who is certified in blockchain and decentralised finance at Polytechnique Paris, is convinced that in terms of tackling money laundering, with the right tools and help, crypto can be even more transparent than fiat currencies. That is why in 2022 she launched Make Compliance Smart to advise companies active in cryptocurrencies.
“With cryptocurrencies, because they are on the chain, we always know where they are. And that is not the case for fiat currencies,” the Senegalese-born expert says.
Market maturity
The timing of Ba’s business launch is good as banks and institutions increasingly seek ways to integrate crypto into their business offering. The European Commission, meanwhile, has mooted a possible new euro-backed digital currency that the European Central Bank could choose to issue in the future, in addition to cash.
She says: “I think that the European Commission realised the potential of cryptocurrencies in terms of the speed of transactions (seconds instead of days) and the fact you don’t need a lot of intermediaries.”
In the past, crypto has been held back by the Wild West regulatory environment and high risk reputation. MiCA, the European legislation that will be applicable from 30 December 2024, looks set to change that. Intended to help streamline distributed ledger technology and virtual asset regulation in the European Union, it also aims to protect users and investors, bringing a confidence boost to consumers in the sector, particularly in Europe.
“It is the most important crypto regulation in the world. So far, neither the US or Asia have anything as harmonised. For me, MiCA is a sign that crypto is going to be the norm for use,” says Ba.
“It is the most important crypto regulation in the world. So far, neither the US or Asia have anything as harmonised. For me, MiCA is a sign that crypto is going to be the norm for use.”
Oumou Ba, founder of Make Compliance Smart
From niche to norm
But, will it be enough to convince the crypto skeptics? Ba reckons that within a year, we will start to see traditional banks proposing new crypto products that could alleviate some of that scepticism. And then? “In five years, I think that it will be normal for everyone to have some crypto at the bank or in their private wallet,” she says.
Much of this will depend on how companies implement money-laundering checks and controls. One thing is for sure, Ba is never short of work, much of it coming from France, which has positioned itself as a crypto hub, and the UK.
“France and the UK are bigger hubs than Luxembourg. But I think once the MiCA regulation is applicable, things will change very quickly,” Ba says of her adopted home country.
She is excited to see how Luxembourg will evolve in terms of tokenisation of funds and the opportunities this will create.
