Europe remains fertile ground for the cryptocurrency ecosystem to flourish in comparison to harsher regulatory environments, according to prominent sp
Europe remains fertile ground for the cryptocurrency ecosystem to flourish in comparison to harsher regulatory environments, according to prominent speakers at this year’s Blockchain Expo in Amsterdam.
Cointelegraph attended the convention held at the RAI conference center for the second year running, with the Blockchain Expo forming part of the larger Tech Expo event being hosted in the Netherlands.
The event has typically attracted prominent mainstream industry players from the financial world to showcase how blockchain technology is being leveraged to power innovative new products and solutions across a myriad of industries.
From finance, logistics, health care and marketing, blockchain technology and Web3 functionality continues to be a key area of growth for different industry players.
MiCA bodes well for institutional adoption
Regulatory matters remain front and center, as was evident in a fireside chat featuring Coinbase institutional sales co-head James Morek and Zodia Markets co-founder Nick Philpott.
Philpott, who established the institutional-grade cryptocurrency trading platform, described the European Union’s Markets in Crypto-Assets (MiCA) regulation as a progressive regulatory measure to guide the growth of the sector while protecting users.
“Institutions feel more comfortable knowing that there is a framework within which they can operate, which is at odds with what is happening in countries like America.”
Philpott’s reference to the United States’ regulatory landscape centered on the cloud of uncertainty that hangs over the cryptocurrency ecosystem. This has been primarily driven by the Securities and Exchange Commission’s separate enforcement actions against key industry players, including Coinbase, Ripple and Binance.US, for alleged securities violations.
Morek, who heads up Coinbase’s institutional sales in the EMEA and APAC regions, also highlighted the establishment of clear regulatory parameters across the EU and in the United Kingdom which have helped crypto-related firms continue to do business.
Off-the-record conversations also suggest that major players like Coinbase continue to attract interest from institutional clients looking to gain exposure or custody of certain cryptocurrencies outside of the U.S.
Related: EU’s new crypto law: How MiCA can make Europe a digital asset hub
This includes a myriad of potential clients, ranging from traditional fund managers, large corporates, private banks and a variety of businesses. Morek told Cointelegraph that Coinbase currently serves over 1300 institutional customers globally.
Legal frameworks that have long allowed companies to have both onshore and offshore entities continue to be an important element in allowing cryptocurrency exchanges and companies to offer services in different jurisdictions.
Philpott also highlighted the United Arab Emirates as a fast-growing crypto and Web3 hub that is actively looking to attract the biggest firms in the industry. The likes of Binance have already established a foothold in the UAE, while Coinbase was reportedly exploring setting up a base of operations in the jurisdiction earlier in 2023.
A tokenized future
Tokenization also remains a drawcard for a variety of institutions, including mainstream banks and financial firms looking to issue and manage debt and investments.
Cointelegraph also spoke to Martijn Siebrand from Dutch bank ABN AMRO. Siebrand is the bank’s digital assets ecosystem manager and he shared insights into ABN AMRO’s recent issuance of a digital green bond that made use of Polygon’s layer-2 Ethereum scaling technology to raise 5 million euros ($5.3 million).
Siebrand said that blockchain technology is proving to be a useful tool for banks to better serve capital markets:
“It’s funny, if we have now talks within the bank, people say capital markets have been there for a long time already yet we haven’t seen many innovations. This could be one major change where a lot of banks are investing in.”
Siebrand added that ABN Amro is already showcasing its blockchain-based digital bond exploits at conferences and exhibitions to both capital market players like mainstream banks as well as private companies looking to raise funds:
“We see two tracks. We have the institutional one serving traditional capital markets. But we also have the chance to help clients that are too big for crowdfunding but too small for capital markets.”
Siebrand added that tokenized debt offerings can be useful for companies that want to avoid selling equity. However, jurisdictional regulatory frameworks need to be further developed before ABN AMRO can create a working roadmap to further its blockchain tokenization offerings:
“We…
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