Upcoming regulatory changes in the European Union could cause a loss of leadership in the crypto industry and lead to a mass exodus of blockchain experts to other countries.
According to an annual report by ETP provider 21Shares, upcoming regulatory changes in the European Union related to the MiCA bill’s entry into force could significantly impact the development of the local crypto market.
The bill may help local centralized service providers in conducting business operations more efficiently. However, some MiCA directives may discourage a large number of talented developers. In particular, the Data Act, which would create the ability to suspend smart contracts, can potentially slow the pace of blockchain development in the region.
According to 21Shares analysts, all of this may lower the EU’s position in the global race for innovation. Another region involved in the jurisdictional competition that may experience some uncertainty in the near future is the United States. The lack of clarity regarding crypto-assets in the country hinders the creation of an environment for innovative projects and may negatively affect the development of local initiatives related to blockchain and cryptocurrencies.
The 21Shares report also highlights two regions whose legislative initiatives are fostering blockchain initiatives, namely:
- The U.K. Regulatory initiatives in the country help attract crypto companies to the region. Even though most of these companies are involved in fraudulent schemes.
- Hong Kong. The authorities made a steep turnaround in crypto market regulation over the past year by legalizing the activities of local crypto exchanges and opening access to crypto exchange-traded funds (ETF) for investors.
The MiCA bill will officially come into force at the end of 2024, significantly restricting the activities of stablecoin issuers in the European Union.
Сообщение New EU Legislation Could Impede Local Crypto Market Development появились сначала на CoinsPaid Media.
