Over the past few months, US bank regulators have issued statements highlighting the “risks posed by crypto.” The Fed rejected Custodia Bank’s membership application due to its crypto connection. The U.S. Commodity Futures Trading Commission (CFTC) has also sued Binance, the world’s largest cryptocurrency exchange by volume, and Changpeng Zhao, the company’s founder and CEO, for regulatory violations. As it is known, the SEC is also pursuing regulation through sanctions, including its latest Wells notification to cryptocurrency exchange Coinbase.
The sentiments on crypto money in the USA are not very positive… According to data from Forbes, digital innovation is moving outside the USA.
Most of the crypto developers go from the USA
Thousands of developers around the world write code for open source crypto projects via Github. According to the latest Electric Capital report, the US dominance of open source contributions has dropped from 40 percent in 2017 to 29 percent in 2022. This means that more than 70 percent of the crypto developers surveyed live in places like Europe, Latin America, and Africa.
In Asia, India has markedly increased its share among active crypto developers, according to the data. Despite the volatile price of Bitcoin and other cryptocurrencies, the blockchain industry is still booming here. Overall, the Electric Capital report calculated the number of monthly active developers to be 297 percent more in 2023 than in the bull market of January 2018, when Bitcoin hit a new high in network value. In short, the price of Bitcoin, mismanagement, and regulatory backlash against scams have not curbed the industry’s global growth.
Many developers and entrepreneurs have started leaving the US to consider more crypto-friendly jurisdictions. Here are some of the industry’s talents going and why:
The European Union makes progress in the field of cryptocurrencies
The European Union will soon vote to pass the block’s first comprehensive crypto bill. The regulation, called MiCA, will define which crypto assets are regulated and will provide crypto trading platforms and service providers a way to register.
American companies like Coinbase still complain that US regulators are not clear on how to work with altcoins.
Leading crypto companies in Switzerland
Switzerland has long been opening its doors to crypto companies. The country enacted the “Blockchain Act” in August 2021, offering four different crypto licenses: fintech, stock market, mutual fund or banking: In September 2021, FINMA was the first exchange and centralized securities for token trading to the SIX Digital Exchange. granted the storage license. Many of the world’s leading crypto institutions such as Ethereum, Solana, Tezos are located in Switzerland.
US crypto moves benefited London, which misses its old glory days
Another European fintech hub that will benefit from the climate in the US is London, the former financial capital of the western world.
In February 2023, the British Treasury said it would work on a framework for cryptocurrencies. This shows that the UK wants to compete with the EU for hosting the best digital innovation hubs. On the other hand, the Bank of England is working for a Central Bank Digital Currency (CBDC). British regulators have also added even more local improvements to MiCA, such as additional sections on the regulation of crypto loans.
China seeks to end US dollar dominance
Asian countries are probably even ahead of Europe and the UK, according to Forbes.
Hong Kong officials recently hosted a big summit to attract the industry. It will also hold a meeting at the end of April to help crypto companies find banking services.
In the past few weeks, China has paid the French company Total in yuan for natural gas. In addition, Brazil and China have agreed to trade in their own currencies rather than the US dollar. Similar yuan swap arrangements are already in place with Kazakhstan, Laos and Pakistan.
While not explicitly crypto-related, these actions point to China’s intent to dethrone the dollar.
Japan is the first major country to adopt stablecoin legislation
Meanwhile, the Bank of Japan (BoJ) announced in April that it would test the use of CBDC, known as the digital yen.
Japan, which holds the presidency of the G7 this year, became the first major country to adopt stablecoin legislation that will go into effect in June 2023. Japan is positioning itself not only as a crypto hub, but also as a Web3 hub.
Warning that “US leadership may come to an end”
The future of crypto looks bright in many countries around the world. According to Forbes, the fact that US crypto entrepreneurs are moving overseas to develop their companies indicates that the US cannot remain a global economic leader.
Original source: https://turkey.postsen.com/business/247252/There-is-a-‘crypto-migration’-from-the-US-to-Europe-and-Asia.html
