Europe and Asia — not the US — will lead in blockchain
The US Government is putting the squeeze on crypto. Recently they shut down two banks that were friendly to crypto and acting as bridges between trading exchanges and the real world. These were Silvergate and Signature Bank of NY. These closures follow some events that might appear coordinated to some people. This includes the shuttering of the Paxos BUSD stablecoin and the NY lawsuit against Kucoin and Ethereum.
One can think that these are coincidental actions against crypto, but some feel that it is similar to Operation Chokepoint — but instead, it’s designed to try to kill crypto. In its place, the US plans to release a Central Bank Digital Currency (CBDC) that can track where everyone spends their money. Obviously, that will be a nightmare for privacy advocates.
President Joe Biden also announced plans to eliminate tax deductions for crypto wash trading at the end of the year that are bought back immediately after, and an added 30% tax on the energy used for mining in Proof of Work. Earlier, the SEC under Chairman Gary Gensler had barred Kraken from implementing their staking service. This follows previous lawsuits against other crypto entities, such as their focus on Ripple.
Apparently, the US wants crypto and Web3 to grow elsewhere. They may say otherwise, but their actions speak louder than words — especially as they regulate with enforcement instead of guidance.
Against this backdrop is the European move to pass legislation through the Markets in Crypto Assets (MICA) legal framework. There is also the move of the Chinese government to legalize crypto in Hong Kong. Across Asia, Europe, the Middle East and other places, they are looking for ways to attract more crypto and Web3 startups since they know it can bring
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