“Leadership and Political Will : How Countries are Embracing Crypto and the US is Falling Behind”2023

“Leadership and Political Will: How Countries are Embracing Crypto and the US is Falling Behind” : Our team attended Blockchain Week in Paris where we noticed the event has grown significantly since 2019.

Back then, it was held at Station F, which was still an up-and-coming tech ecosystem development on the edge of the city. This year, the event is being held at the Louvre, one of the world’s most respected museums, signaling France’s growing recognition of the potential of crypto.

Other countries such as the UK, UAE, Hong Kong, Singapore, Australia, and Japan are also recognizing this opportunity and are offering space for the crypto industry to flourish.

The UK has been one of the fastest-growing markets for Coinbase over the last 12 months. The reason for this is political will and leadership.

The UK Government has been actively working to make the UK a leading crypto hub, with efforts led by the Chancellor of the Exchequer, the Economic Secretary, and the Department of Science, Innovation, and Technology.

Embracing Crypto

Our CEO, Brian Armstrong, will be speaking at UK Fintech Week on 18 April to acknowledge the policymakers and regulators for their efforts and offer thoughts on how the UK can further adopt crypto.

The final vote on MiCA, the EU’s comprehensive regulatory framework for crypto-assets, will take place at the European Parliament in Strasbourg, the same week as UK Fintech Week.

This is a pivotal moment for crypto in the region, and the work of European policymakers should be held up as an example. Europe now matches the US in its share of crypto developers, with 29% apiece globally.

This level of growth does not happen by chance and requires concerted efforts, such as developing a regulatory framework that provides clarity and stability for businesses operating in the space.

At Coinbase, our mission is to increase economic freedom globally, which means not leaving anyone behind as we chart this new course. We have observed that the US regulatory approach to crypto has created an environment of uncertainty and instability in the crypto industry.

Other countries are not afraid to pick up the slack, and we are impressed by what our international teams are shipping each week and the encouragement they receive from local political leadership.

It is bittersweet to see crypto achieving global scale, but as an American company, it’s hard to sit by and watch the US squander the opportunity it has been given.

How Countries are Embracing Crypto and the US is Falling Behind

The adoption and regulation of cryptocurrencies have been varying across different countries around the world. While some countries have embraced crypto and created a favorable environment for their growth, others have been more hesitant and cautious.

Some countries, such as Japan and Switzerland, have taken a proactive approach to regulate cryptocurrencies and create a framework for their use. Japan, for example, has recognized Bitcoin as a legal currency and has licensed several cryptocurrency exchanges. Switzerland has also created a favorable environment for crypto, with a business-friendly regulatory approach and a high concentration of cryptocurrency companies and startups.

Other countries, such as China and India, have taken a more cautious approach, with their central banks imposing restrictions and bans on cryptocurrency trading and ICOs (Initial Coin Offerings).

The United States, on the other hand, has been falling behind in terms of crypto regulation and adoption. While some states have created their own regulatory frameworks for cryptocurrency, there is currently no federal framework governing the use of crypto in the US. This has created uncertainty and made it difficult for crypto companies and investors to operate and invest in the country.

Furthermore, the US government has been cracking down on the use of crypto for illegal activities, which has led to a negative perception of cryptocurrencies among some policymakers and regulators.

However, there are signs of progress, with the Biden administration showing interest in creating a regulatory framework for cryptocurrencies. The infrastructure bill recently passed by the US Senate also included provisions for regulating cryptocurrencies, although some in the crypto community have criticized it for being too restrictive.

Overall, the adoption and regulation of cryptocurrencies vary widely across different countries, and the US is currently falling behind in terms of creating a favorable environment for crypto growth. However, there are signs of progress, and it remains to be seen how the regulatory landscape will evolve in the coming years.