Regulations on crypto are still the hottest topic not only in the US but also in European Union (EU), China and the Middle East. While debates over clarity on crypto don’t show any improvement, the EU took promising steps to tame the Wild West-like crypto industry and passed MiCA regulation for digital assets. Europe stands out as a better place for blockchain and crypto startups and companies as it supports innovation under a fair competition frame.
Big tech companies announced their earnings in the last week of April. Alphabet (Google), Microsoft, Amazon, Visa, and MasterCard reports showed an increase in gains for tech companies and it supported Bitcoin and crypto prices throughout the week.
While there is still uncertainty in the US, European Union passed the MiCA regulation. The bill will be effective in 2024 Europe-wide in an effort to fight against money laundering and protect consumers. According to law, if a crypto firm gets proper licences in a European country then can operate in other member countries too. Member of the European Parliament (MEP) Stefan Berger who led the bill shared a statement after the legislation, the purpose of the law is to prevent Lehman Brothers moments like FTX and Luna. After the bill, crypto companies will face a tougher period of approval. They must prepare a highly detailed whitepaper for each asset they offer. Stablecoins will have higher standards and tighter rules. The bill is welcomed by the industry and it is believed that Europe is a step ahead of other regions with this bill and many crypto companies might shift to the region.
A similar move also came from the East. Hong Kong’s Securities and Futures Commission (SFC) published the planned text of the crypto regulation bill. The draft is open for public opinion and the officials stated that the purpose of the draft is to create a safer environment for crypto and digital assets. The driving mission behind the bill is explained with the motto «regulate to protect». The bill will require companies to register digital assets.
The Emirates is an active player in crypto markets and is keen to enlarge its footstep. Dubai is working on a crypto licensing regime.
While other parts of the world showing progress in regulating the crypto space, the US still lacks signalling recovery symptoms which causes fear among the crypto companies. Two of the largest crypto companies in the US announced that they are preparing an alternative solution in case of the uncertainty in the US continues. Coinbase recently stated that the company is exploring options to operate as an offshore platform. Coinbase received the required licences in Bermuda. Bermuda Monetary Authority (BMA) granted Coinbase a Class F licence. The steps came after Coinbase CEO Brian Armstrong signalled to leave the US «if clarity on crypto doesn’t improve». Gemini also took similar steps and assigned a regional CEO, Pravijt Tiwana, for their new Asia-Pacific (APAC) department. Tiwana will be responsible for the company’s expansion in different regions.
Estonian crypto exchange Coinloan surprisingly received a restraining order from a local court and was required to stop operations including withdrawals. Coinloan is a legal entity in Estonia and is subject to Estonian laws. The company made an announcement on their website and states that the company’s legal team is working on finding a solution.
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