While it is unclear who will even regulate cryptocurrencies in the United States, steps taken in Europe have resulted in investment funds flowing into local crypto projects.
Patrick Hansen, EU chief of stablecoin issuer Circle, stated that investment in blockchain projects in the region is 10 times higher than in the past.
The MiCA effect 🇪🇺🚀
The share of VC investment into European crypto projects is up almost 10x in one year – from a share of 5.9% in Q1 2022 to 47.6% in Q2 2023.
Regulatory clarity attracts capital & entrepreneurs from around the world. Great development for crypto in Europe! pic.twitter.com/kUVp3rwlg3
— Patrick Hansen (@paddi_hansen) May 9, 2023
Linking the increase in question to MiCA regulations, Hansen embodied his thesis thanks to the graphic he shared.
According to the chart shared by the Circle official, EU-based crypto projects received 48% of all investments in the 1st quarter of 2023. This figure was only around 6% last year.
Richard Teng, European Regional President of the giant crypto exchange Binance, made similar remarks in an interview with a magazine.
The new MICA framework provides regulatory clarity and consistency for crypto businesses in EU. A model for other regulators to emulate.
Great to work on an article based on this new legislation while representing #Binance at Eurofi pic.twitter.com/Zk3v1rqzwz
— Richard Teng (@_RichardTeng) May 10, 2023
"The new MiCA regulations remove uncertainty for the future of crypto projects in the European Union. Other countries should follow suit."
According to research by investment firm Rockaway, the cities of London, Zurich and Berlin play an important role in the regional fund flow. Rockaway announced that in 2022, crypto startups received $5.7 billion investment.
Although crypto investments are heading to the European region, the total figure is lower than in the past. 2023 1st quarter investments are 82% below the quarterly average of the previous year.
