Venture Investments in European crypto projects have almost decupled over the past year – analysts
It is noted that investments have grown from 5.9% in the first quarter of 2022 to 47.6% in the first quarter of 2023
Patrick Hansen, Director of Research and Policy at Circle, noted that this growth was the result of regulatory clarity in the region following the adoption of the MiCA law by the European Union.
This is reported by CryptoSlate.
It is pointed out that the EU is just one of many regions attracting the interest of crypto investors. Other countries, such as the United Arab Emirates and Hong Kong, are also seeing an increase in crypto investments.
These countries share a desire to provide regulatory clarity for cryptocurrency companies operating under their jurisdiction. New rules for cryptocurrency exchanges offering retail trading in Hong Kong will come into effect on 1 June.
Meanwhile, Dubai and Abu Dhabi have also attracted several cryptocurrency companies, including Coinbase. The crypto exchange is working on obtaining licences to provide services with virtual assets in the country.
At the same time, several cryptocurrency companies are leaving the United States, citing regulatory issues. Since the beginning of the year, such cryptocurrency companies as Nexo, Beaxy, Bittrex and others have ceased their operations, citing regulatory problems. Recently, Coinbase and Gemini have created an offshore exchange and are also working on expansion in other countries.
Market makers Jane Street and Jump Crypto have begun work on mitigating cryptocurrency risks, citing regulatory issues.
Background. Mind previously reported that funding for crypto startups had fallen by 80% in the first quarter.
