Why Europeans Are More Optimistic About Crypto Than Americans

CoinShares recently reviewed the differing crypto perceptions between Europeans and Americans. Their findings? Stark differences. And this largely springs from each region’s regulatory stance.

Europeans and Americans don’t see eye to eye when it comes to crypto investments. Weekly, Europeans are pouring roughly 16 million USD into various crypto avenues. Conversely, Americans are pulling out, with withdrawals hitting 14 million USD.

Yet, even with Europe’s bullish trend, they’ve shown caution recently. CoinShares pointed out that they yanked over 24 million dollars in the past month. For the US? They withdrew a whopping 67.5 million dollars in that same period.

So, what’s driving this divergent sentiment?

Regulations and Their Role

CoinShares believes the answer lies in regulatory discrepancies. The European Union took steps last summer, unveiling the Markets in Crypto-Assets (MiCA) regulations. Set to take full effect by December 2024, MiCA focuses on streamlining rules for cryptocurrencies and stablecoins.

Jon Egilsson, at the helm of Euro stablecoin Monerium, clarified, ‘MiCA is a significant development expected to greatly influence the crypto world in Europe.’

Europe’s crypto space buzzed when the Jacobi FT Wilshire Bitcoin ETF launched in Amsterdam this August. Also, the introduction of Gnosis Pay’s visa-activated crypto card was a notable event.

Challenges Across the Atlantic

In contrast, the US grapples with ETF approvals and regulatory clarity. Government bodies have pinned major crypto entities, like Binance and Coinbase, in lawsuits.

Egilsson expressed his concerns, stating, ‘The lack of clear rules, government disputes, and legal uncertainties make it challenging to invest in this sector.’ The discord between the US Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) on stablecoin supervision adds fuel to the fire.

Given these circumstances, the US and Europe seem to be heading in opposite directions in their crypto endeavors.