Following the U.K. Brexit, the U.K. has been well positioned to construct an independent regulatory crypto framework, and the government is signaling an open-minded, friendly regulation, providing FinCEN-licenses for U.K.-based crypto venues, with multiple U.K.-ETF and CCP-based derivatives offerings being in the works. France, Germany, Spain, and Italy represent 23% of European crypto employment; in extension, the major EU constituents employ nearly a fourth of all European crypto employment. EU’s MiCA framework was passed in the EU parliament earlier in 2023, leading the EU to become the first major jurisdiction to introduce a tailored regulatory framework for crypto. As the EU’s MiCA framework goes into effect, these regions may experience an influx of employment and companies flagging towards the EU. Particularly from the U.S., as Europe may be viewed as a more attractive option considering the borderline hostile stance taken by regulators in the U.S. It still remains to be seen how MiCA will play out in practice. The framework is not clear for concrete purposes and can be interpreted in many different ways. Clarifications and precedent will be of vital importance for whether the EU will be regarded as crypto-friendly.
Switzerland shares traits with the U.K. in its substantial relevancy in traditional financial markets and similarities with Singapore in its crypto-friendly regulation and low-tax environment. Further similarities with Singapore are present in the Swiss-registered company employment, with a global employee base across multiple jurisdictions. Favorable regulations have long attracted crypto companies to Switzerland, particularly the Crypto Valley near Zug. In recent years, Lugano has also positioned itself as a crypto-friendly city after deciding to make BTC and USDT legal tender. In essence, Switzerland benefits from open, friendly policies towards crypto, attracting venues and capital to the country, similar to how Switzerland has positioned itself in traditional financial markets.