Clear EU crypto rules lead to a strange increase in investments

The European Parliament recently formally approved two key points in the MiCA legislation for the cryptocurrency industry. This means that the industry in Europe will have clear rules, which in theory is a good thing for companies looking to invest in cryptocurrency. The effects of this clarity are already measurable.

Europe is known for its cryptocurrency venture capital

This is evident from his research bloomberg. While Europe was the source of only 5.9% of venture capital in the first quarter of 2022, this has increased sharply since then. In the first quarter of 2023, Europe’s share has grown to 47.6% of the total – nearly tenfold in just one year. The US business newspaper did not say how much money was included in the total.

It is also significant that Bloomberg counts the UK separately from the rest of Europe. The UK aims to become a major cryptocurrency hub as well, but it sets slightly different rules. After all, it is no longer part of the European Union since Brexit. It is not clear whether the business newspaper also considers Russian money as part of Europe’s money.

In any case, the data shows that the European crypto sector has grown at the expense of almost all other major sources of capital. The United States and the United Kingdom in particular lost market share, but the rest of the world grew as well. The fourth quarter of 2022 was very favorable for Singapore. Europe didn’t fare so well that quarter, but now Singapore’s share is back where it started.

MiCA effect 🇪🇺🚀

The share of venture capital investment in European crypto projects has increased almost 10x in one year – from a 5.9% share in the first quarter of 2022 to 47.6% in the second quarter of 2023.

Regulatory clarity attracts capital and entrepreneurs from all over the world. Big development for cryptocurrency in Europe! pic.twitter.com/kUVp3rwlg3

– Patrick Hansen (@paddi_hansen) May 9, 2023

Investors are happy with the MiCA cryptocurrency

The impact of the upcoming MiCA (Markets in Crypto Assets) legislation is not only visible in the bare graphs. According to a survey by a European crypto investment fund, Europe is now more popular than before.

A number of European cities have become true cryptocurrency centers due to the hope of good politics, namely Lisbon, Berlin and Paris. Many of the project’s founders come from the United States, where regulatory authorities provide less support to the industry.