The crypto industry is dynamic and constantly changing. But a lot is changing from a legislative perspective as well. Legally, a lot will change this year in both the US and the European Union (EU). According to “Crypto Status”. Report From 21Shares, the US and EU will be affected by new laws for the crypto industry.
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The US and the EU are still unclear
In the latest edition of The State of Crypto, published on January 28, 21Shares takes a closer look at legislative developments slated for this year and how they may affect the crypto industry. The report specifically names the United States and the European Union as jurisdictions “at risk to their leadership” with legislative actions.
According to the report, it is unclear what exactly crypto companies will have to deal with in the coming years, especially in the EU.
“Things are not so clear in the EU. Markets in Crypto Assets Regulation (MiCa) legislation will make operations more efficient for centralized service providers. But a data law aimed at blocking smart contracts could actually scare off blockchain developers.
According to the report. On December 22, 2023, the European Union published the aforementioned data law. The Act aims to facilitate and improve the exchange of data within the European Economic Area.
But there is a clause in the law that prohibits smart contracts. Smart contracts are an important part of crypto, so the legislation is a big blow to the European crypto industry. But the situation in the US is still unclear.
“The biggest question in 2024 will be whether lawmakers in the world's largest market, the United States, will finally provide much-needed legal clarity to entrepreneurs and consumers.”
The United Kingdom and Hong Kong do good business
The report also pointed to jurisdictions that perform much better than the EU and the US. The United Kingdom and Hong Kong in particular are coming to the fore. 21Shares expects the UK to be well-positioned to attract new crypto companies in 2024.
Hong Kong also did good business in 2023. It helped establish crypto exchanges and stablecoin providers. Hong Kong is on track to launch its own Bitcoin (BTC) spot ETFs this quarter.
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