“MiCA Legislation Boosting European Crypto Ventures: Investors Respond Positively”

The European Parliament recently officially approved two key points of MiCA legislation for the crypto industry. This means that the industry in Europe will have clear rules, which in theory is good for companies looking to invest in crypto. The effects of this clarity are already measurable.

Europe popular for crypto venture capital

This is evident from research by Bloomberg. While Europe was the source of only 5.9% of venture capital in the first quarter of 2022, this has increased sharply since then. In the first quarter of 2023, Europe’s share has grown to 47.6% of the total – almost a tenfold increase in just one year. The American business newspaper does not say how much money is involved in total.

Also important is that Bloomberg calculated the UK separately from the rest of Europe. The UK is aiming to become a major ‘crypto hub’ as well, but it sets slightly different rules. After all, it is no longer part of the EU since Brexit. Whether the business newspaper also sees Russian money as part of that of Europe is not clear.

In any case, the data shows that the European crypto sector has grown at the expense of virtually all other major sources of capital. The United States and the United Kingdom in particular lost market share, but the rest of the world has also grown. The fourth quarter of 2022 was very favorable for Singapore. Europe was not doing very well in that quarter, but now Singapore’s share is back where it started.

The MiCA effect 🇪🇺🚀

The share of VC investment into European crypto projects is up almost 10x in one year – from a share of 5.9% in Q1 2022 to 47.6% in Q2 2023.

Regulatory clarity attracts capital & entrepreneurs from around the world. Great development for crypto in Europe! pic.twitter.com/kUVp3rwlg3

— Patrick Hansen (@paddi_hansen) May 9, 2023

Investors happy with crypto law MiCA

The effect of the upcoming MiCA (Markets in Crypto-Assets) legislation is not only noticeable in abstract charts. According to a survey by a European crypto investment fund, Europe is now a lot more popular than before.

A number of European cities have become a real crypto hub due to the hope of good policy, namely Lisbon, Berlin and Paris. Many project founders come from the US, where regulatory authorities offer less support to the industry.