World, As Seen from the most beautiful islands: Ireland and Cyprus

Europe catches fleeing US crypto companies


US regulators do not seem to be scrambling to establish clear guidelines for crypto companies. In the meantime, Europe is doing this, and a major transition seems to be underway.

The American crypto exodus

The US Security and Exchange Commission (SEC) is the bogeyman of the crypto sector in the United States and makes it very difficult for the crypto industry. Several prominent companies seem to be considering a move abroad, perhaps a crossing to Europe. This is what Ripple (XRP) CEO Brad Garlinghouse speculates on Thursday in an interview with CNBC:

“[Due to confusing regulation in the US] you see businesses and investments flowing into other jurisdictions. Europe in particular seems to benefit greatly from this confusion in the United States.”

In Europe, things are much better from a legislative point of view. Although authorities are not necessarily big fans of the crypto sector, we are slowly seeing more clarity. For example, last week the long-awaited MiCa crypto law was adopted by the European finance ministers.

The MiCa crypto Act sets out clear guidelines that crypto companies must adhere to in the European Union. While this will give users and businesses a lot less freedom, it is a lot better than the situation in America. The hostile attitude of the SEC towards the US crypto sector is taking unsustainable forms.

This is a clear contrast to the situation in France, for example. Thus, the French seem to be throwing the doors wide open for companies fleeing the legislative climate in America. Owen Simonin, the CEO of a French crypto investment platform explains:

“In France, we have the advantage of a clear [legislative] framework. France is likely to expand its legislative framework to the European level. It provides a clear, defined legislative framework that attracts large international companies, thereby opening up the European market for them.”

France already has clear legislation for crypto companies since 2019. In addition, the aforementioned European MiCa crypto law will come into force from next year. It is expected, as long as US regulators continue to dabble, that Europe will provide a new home for the US crypto exodus. So for now, it looks bright for the future of the European crypto industry.

Written by: Grace Kennedy

Grace Kennedy is a leading journalist, columnist of events in Ireland and beyond. 8 years in journalism, since she dropped out of university and ran away from home.

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