Is there a crypto exodus looming on the horizon? The question seems viable with companies like Bittrex and Coinbase looking to wind down their US operations and other industry players searching for safe havens amid growing regulatory uncertainty.
At the same time, Washington offers no clear prospect of a legal framework for crypto firms and indulges in enforcement instead. As reported by the Financial Times, the DOJ has promised to double down on scrutinizing digital platforms for obscuring transaction trails, which makes for a compelling incentive to move offshore.
For example, to the other side of the Atlantic, where things seem to be going the opposite way. According to the news delivered by Jack Schickler, a Brussel-based CoinDesk reporter, France has just sent a warm welcome to crypto businesses looking for legal stability.
At Tuesday’s press conference, Benoît de Juvigny, Secretary General of the Financial Markets Authority (Autorité des marchés financiers, AMF), reminded that France had been a pioneer in providing the legal regime for crypto businesses. In 2019, the country promulgated Prestataire de service sur actifs numériques, abbreviated as PSAN – a regulatory framework for some crypto industry entities and their supervision by French financial regulators.
– In France, we are proud to be pioneers. If American players want to benefit, in the very short term, from the French regime, and from the start of 2025 from European arrangements, clearly they are welcome – said de Juvigny. – We have good relations and discussions with our US counterparts – he added.
Citing “the European arrangements,” de Juvigny referred to the Markets in Crypto Assets (MiCA) Regulation – the new EU legislation governing the issuance and provision of cryptocurrency and stablecoin services. The regulation – the first and only legislation of this kind globally – was adopted on April 20 this year by the European Parliament and signed off by the EU Council yesterday. The law is due to take effect by early 2025.
For many US crypto companies frustrated with the government’s oppressive approach and lack of legal clarity, moving their operations to the EU may be the best option.