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The Web3 industry is constantly changing – especially in the last few months. With the changing regulatory regimes around the world, crypto companies are looking for the best locations to set up their businesses. While the USA is driving out the industry with an aggressive policy, other economic zones are working on a comprehensive legal framework that is intended to guarantee the settlement of profitable companies. in one comprehensive report Coindesk measured the attractiveness of different cities and economic zones. These are the best locations for crypto investors and those who want to become one.
1. Crypto Valley in Switzerland
The canton in the Swiss Alps offers everything a crypto heart desires: regulatory clarity, crypto-friendly banks and a lively job market. Zug also has a rich history: Ethereum was founded and developed here.
With a small population, the canton had the highest overall per capita score in opportunity measurements due to the diversity of its crypto-related businesses and events. What’s more: Zug also secured the winner’s podium in terms of regulation and quality of life. Almost 180 kilometers to the south, a new crypto hub is also being built in Switzerland: Lugano. There, citizens have been able to pay with Bitcoin and Co. for a long time, and the administrative apparatus is also bullish about the future.
2. Singapore: Lion State as Crypto Paradise?
The fintech center developed into a crypto hub early on and collected billions through ICOs. But the party was over in 2022: After the collapse of 3AC, Singapore is looking for the right regulatory balance to sustainably promote the crypto industry.
On the one hand, one would like to counter potential misconduct in the crypto scene “brutally and relentlessly hard”. On the other hand, this could prevent innovation. So there is no free pass for crypto service providers in Singapore. However, it doesn’t need that either. The rules are “fair, clear and offer a good mix of business friendliness and customer safety.”
3. London: old meets new
The city is a global financial hub and already has an advanced crypto adoption rate. The government is also striving to further expand the industry and recently passed a regulatory law that puts Bitcoin and Co. on a par with traditional asset classes.
Meanwhile, there is also interest in cryptocurrency among long-established financial institutions. For example, the London Stock Exchange plans to offer clearing services for bitcoin index futures and options contracts. Meanwhile, crypto companies, including Coinbase, also want to open up new markets and are choosing the United Kingdom as their gateway.
4. Seoul: The way out of the crisis
With millions of users, the people of South Korea are very interested in crypto technology, especially the residents of the capital Seoul. The blockchain is also already being used in everyday life, for example as a vehicle for the digitization of identification. Nevertheless, the crypto year 2022 and especially the Terra implosion and the FTX collapse was a major setback for investors from South Korea.
The government reacted to the eruptions in the crypto sector and is working on a comprehensive regulatory package. The country’s top financial regulator gave its tentative approval to a bill to create a fair and safe trading environment for digital assets.
5. Dubai: With regulation to the goal
Much of the crypto universe has been shifting to Dubai since March 2022. Because: With the VARA, the United Arab Emirates (UAE) have created the world’s first independent crypto regulatory authority. Last but not least, the crypto exchange Binance, which is under legal pressure, is looking for a way out to Dubai. Ripple – also in the focus of the SEC – is planning to set up in Dubai.
Despite the extensive regulation, crypto companies still have problems with regulated access to banks. The reason for this is the country’s complications with the Financial Action Task Force (FATF). This makes access to the international banking system and ultimately the business of the crypto industry more difficult.
However, the UAE is working flat out on this. As part of new regulations, for example, the issue of privacy coins is prohibited. Experts expect an easing of FATF restrictions by the end of the year. This should help the country grow into a new crypto location.
EU: MiCA strengthens the crypto industry
With the MiCA regulation passed in April, Europe will be the first major economic zone to have its own crypto regulation. The ordinance brings drastic changes primarily for service providers, who will have to comply with a whole series of new rules from 2025. Crypto providers (so-called Virtual Asset Service Providers, VASP for short) therefore need a license if they want to operate in the EU. However, the permit then applies to the entire economic zone.
Furthermore, the MiCA regulation obliges crypto projects to publish a “white paper” with detailed information on the business operations and the design of the respective coins or tokens. Above all, these measures bring the citizens one thing: consumer protection. The EU should thus become more attractive for both service providers and investors and drive the next bull run.
The report highlights the potential crypto hubs based on several aspects categorized. This includes, for example, the openness and interest of both the government and the population. This goes hand in hand with the regulatory policy of the individual locations, which was rated as the most heavily weighted criterion. Categories such as the existing adoption, quality of life, digital evolution and jobs play a minor role in the evaluation.