Gemini

Patrick

United

April

Venture capital investment into European crypto projects increased almost ten times in the past year, going from 5.9% in the first quarter of 2022 to 47.6% in Q1 of 2023.
Circle Director of Research and Policy Patrick Hansen <a href="https://twitter.com/paddi_hansen/status/1655883224726241281?s=20">noted</a> that this increase resulted from the region&#8217;s regulatory clarity following the European Union passage of the MiCA law.
<figure id="attachment_324414" aria-describedby="caption-attachment-324414" style="width: 900px" class="wp-caption aligncenter"><img class="size-full wp-image-324414" src="https://cryptoslate.com/wp-content/uploads/2023/05/FvreaQWXsAApYT4.jpg" alt="EU Crypto investment" width="900" height="563" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/FvreaQWXsAApYT4.jpg 900w, https://cryptoslate.com/wp-content/uploads/2023/05/FvreaQWXsAApYT4-300x188.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/FvreaQWXsAApYT4-768x480.jpg 768w" sizes="(max-width: 900px) 100vw, 900px" /><figcaption id="caption-attachment-324414" class="wp-caption-text">Source: Twitter</figcaption></figure>
The European Parliament <a href="https://cryptoslate.com/eus-mica-crypto-regulatory-framework-passes-final-parliamentary-voting/">passed</a> the Markets in Crypto Assets Law (MiCA) in April but will not apply until July 2024. The law — which has garnered large interest from the crypto community — would allow the E.U. to have a unified approach to crypto asset regulation across 27 member states.
<h2 id="other-regions-attracting-crypto-investors">Other regions attracting crypto investors</h2>
Meanwhile, the E.U. is only one of the many regions attracting interest from crypto investors. Other countries, like the United Arab Emirates and Hong Kong, are also seeing more crypto investments.
All these countries have in common their efforts to provide regulatory clarity for crypto companies operating under their jurisdiction. Hong Kong&#8217;s new regulations for crypto exchanges offering retail trading will go into <a href="https://cryptoslate.com/hong-kong-set-to-enforce-crypto-regulation-from-june/">effect</a> by June 1.
Meanwhile, Dubai and Abu Dhabi have also seen <a href="https://cryptoslate.com/uae-to-create-exclusive-free-zone-for-digital-virtual-asset-companies/">interest</a> from several crypto companies, including Coinbase. Earlier this week, Coinbase CEO <a href="https://cryptoslate.com/coinbase-is-considering-uae-for-its-international-hub/">commended</a> the country for its progressive regulatory effort. Coinbase is working to obtain licenses for virtual assets services in the country.
<h2 id="things-are-different-in-us">Things are different in US</h2>
Meanwhile, several crypto firms are leaving the U.S., citing regulatory concerns.
From the beginning of the year, crypto firms like Nexo, Beaxy, Bittrex, etc., have <a href="https://cryptoslate.com/sec-charges-forces-crypto-exchange-beaxy-to-close-operations/">shuttered</a> their operation, citing regulatory concerns. Recently, Coinbase and Gemini <a href="https://cryptoslate.com/coinbase-launch-international-exchange-for-institutional-traders-outside-us/">established</a> an offshore exchange and are also working to expand to other countries.
Market makers Jane Street and Jump Crypto have begun <a href="https://www.bloomberg.com/news/articles/2023-05-09/jane-street-jump-pull-back-crypto-trading-amid-us-crackdown">efforts</a> to reduce their crypto exposure citing regulatory issues.
The post <a rel="nofollow" href="https://cryptoslate.com/vc-investments-in-european-projects-rise-in-q1-2023/">VC investments in European projects rise in Q1 2023</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

VC investments in European projects rise in Q1 2023

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