Europe hopes to lure US crypto companies with clear rules and regulations
Europe appears to be winning the crypto battle against the United States. Where small and innovative crypto companies in America beg politicians to put clear regulations in order, Europe seems to have its affairs in order with Mica (Markets in crypto assets regulation). Even US politicians admit that there is a risk that a large part of the crypto market will settle in Europe.
American financial authorities are currently trying to adapt the decades-old rules that apply to banks and investors onto the crypto world, but the industry replies that this is not according to the realities of operating in the digital world. U.S. Congress is nowhere near the point where it could create a federal standard for digital currencies.
All this is in sharp contrast to the European Union, which is preparing to activate new laws tailored for digital asset companies. Many European officials are therefore increasingly pitching the EU countries as a welcoming place for crypto companies to establish their HQ.
Senator Cynthia Lummis of Wyoming, one of the Republican Party’s most crypto-friendly politicians, admitted that:
The European Union’s ahead of us. Switzerland’s ahead of us. Australia’s ahead of us. England’s ahead of us. So it’s not just second- and third-world countries.
What is really at stake, of course, is America’s reputation as the sole promoter of innovation and finance. Although the crypto world has lost political influence in recent months due to the bankruptcy of FTX, the rise of the same industry in the EU is remarkable.
Even major players in the crypto market admit that MICA looks good to them.
Europe is clearly moving faster than the US in establishing regulatory frameworks for the crypto asset industry, said Susan Friedman, the international policy advisor at Ripple (which issues the XRP coin). We therefore expect Europe to become a natural hub for crypto in the future.
European politicians themselves are also very positive about the new system. Stefan Berger, the German politician who co-developed MICA said:
We will have the best regulations in the world for crypto companies to develop. We will have everything you need for a workable market.