The global cryptocurrency and even financial advanced areas are mainly concentrated in European and American countries, including the United States, Britain, France, Germany, and others. The reason why they can develop well is mainly because they provide suitable conditions or environments for the development of cryptocurrencies, such as funding, users, regulation, technology, talent, etc.
Unfortunately, in the past two years, there has been a significant shift in regulation in the United States from embracing to cracking down. A typical example is the continuous charges by the Securities and Exchange Commission (SEC) against cryptocurrency exchanges such as Binance and Coinbase, while also categorizing over 60 cryptocurrencies as securities and forcing regulated institutions like Robinhood and Coinbase to delist Ripple (XRP), Cardano (ADA), Polygon (MATIC), and more.
Under the high-pressure policies in the United States, many cryptocurrency projects or companies have to consider moving to places like Hong Kong and Singapore, but their reach is limited to Asia. The passage of relevant legislation in the United Kingdom and the European Union this time will help the development of cryptocurrencies throughout Europe.
Specifically, compared to the ambiguous and punitive regulatory environment in the United States, Europe is more attractive and conducive to attracting more domestic American cryptocurrency industries to move there, avoiding the deterioration of the cryptocurrency market due to US regulation. In fact, Europe borders the United States and has gathered many financially developed countries, making it a potential new cryptocurrency center.
Additionally, the global nature of cryptocurrencies is beneficial for competition between Europe and Asia, preventing monopolies, which can help with the iterative optimization of the development of cryptocurrencies.
In short, any friendly policies formulated by countries or regions are beneficial to the development of cryptocurrencies. In bear markets, proactive and friendly regulatory policies not only give confidence to investors but also help lay the groundwork for the next bull market, such as expanding funding channels, acquiring new users, bridging traditional finance, and so on.
