A Gross Domestic Product of almost 16 Trillion Euros and a population of 450 million inhabitants make the EU a key jurisdiction globally for any industry. In the case of the crypto sector and the integration of blockchain technology in the financial sector, the bloc's regulatory appetite, criticized in other areas, is having distinctly positive effects for the companies involved.

As Bloomberg reports, venture capital channeled into European crypto companies has skyrocketed. This has increased its share of investments globally tenfold in one year, from a modest 5.9% in Q1 2022 to an extraordinary 47.6% in Q1 2023. In other words, the approval of the MiCA regulation and the entry into force of the Pilot Regime for distributed registration market infrastructures in the first quarter of 2023 have generated measurable effects in the sector almost instantaneously.

MiCA's regulatory clarity could inject millions into the blockchain industry.

Although the increase in the EU's specific weight as a recipient of venture capital comes against a backdrop of a reduction in the absolute volume of investments in blockchain companies, a consequence of the bursting of the bubble in the sector and the economic context of inflation, the positive trend for the EU is undeniable. According to Coinstack data, its sudden preponderance emerges despite the fact that none of the top crypto investment firms come from EU countries.

On the other hand, even with the bubble bursting at the end of 2022, in February 2023 VC firms globally invested 52% more capital than in January 2023, $872 million and $574 million respectively. This indicates that investor appetite in the heat of regulatory certainty could be maintained or even continue to increase.

The EU is benefiting from the presence of clear rules regarding token issuance, trading and custody brought by the MiCA regulation. The rules harmonize crypto regulation across the EU. They thus establish investor protection measures and provide legal certainty to companies and institutions interested in the use of blockchain technology.

For its part, the Pilot Regime establishes a regulatory testing environment for the issuance and trading of blockchain-registered financial instruments. The most common financial instruments are corporate equity and debt issued by companies.

The uncertainty of the SEC in the US in contrast to the MiCA in Europe could create a new era of European technology leadership.

By promoting both regulations, the EU is clearly differentiating between cryptoassets that are financial instruments and those that are not. The EU avoids categorizing cryptocurrencies as financial instruments. This is an important contrast to the situation in the United States, where the Supervisory (Securities and Exchange Commission, SEC). The U.S. regulator has taken legal action against multiple companies in the crypto sector in recent times. The SEC alleges violations of regulations relating to financial instruments.

In its latest round of litigation, it has sued two of the largest companies in the sector, Coinbase and Binance. It has also published a list of cryptocurrencies that it categorizes as financial instruments, including several of the most widely used ones. And almost worse, the SEC continues to show no intention of developing sector-specific legislation.

Therefore, despite the current limitations of European regulation, the situation of legal uncertainty in the United States is diametrically opposed to that imposed in the EU.

In my view, if the major companies in the sector continue to increase their presence in the EU and relative investment flows remain at around current levels, we are on the threshold of a new era of European technological leadership in a key sector for economic development.

The regulated use of blockchain will enable the capture of cost and time efficiencies at scale. The expansion of access to capital and the democratization of access to investments, placing the Union at the forefront of innovation in financial technology.

#SEC #MICA #BinanceTournament #crypto #Binance

🇳🇱 As we know from the news, Binance have to leave Dutch Market by now. I hope it would be only for a while and some time soon they return when finally regulated.

This applies for who has KYC and is living in the Netherlands. If your residence is in another country, it doesn´t affect you. We all have to be regulated in the country we live.

What you can do:

You can always withdraw them at any time.

You can send them to some wallet like Trust wallet if tokens are available there.

You can convert tokens and withdraw them in euros at the ATM with the Binance card (up to 290 euros per day, keep in mind that some ATMs may charge a 1-3 euro fee, so 280 at 280 is better).

Wait until Binance obtains authorizations to provide products and services to users in the Netherlands.

Official Binance Tweet:

We regret to announce that Binance is leaving the Dutch market as we have been unable to register as a VASP with the Dutch regulator.

We continue to be committed to working collaboratively with regulators around the world and are additionally focused on getting our business ready to be fully MiCA compliant.

Dutch users have received an email on how this impacts them and any steps they will need to take.

https://www.binance.com/en/support/announcement/notice-on-changes-of-services-in-the-netherlands-b5a647be31cf469b87fc3337fd461ced?ref=AZTKZ9XS&utm_source=BinanceTwitter&utm_medium=GlobalSocial&utm_campaign=GlobalSocial

Mail from Binance for further and exact details about what is going to happen:

Which positions need to be reduced and closed before and on July 17th, 2023?

July 12th, 2023:

Binance Loans: All outstanding positions in Binance Loans will be automatically liquidated on July 12th 2023. A 2% loan liquidation fee applies. We recommend that you kindly repay your loans, if any, before July 11th 2023 23:59 (UTC+0) to avoid liquidation fees and potential losses due to loan liquidations.

Binance EARN: New subscriptions will no longer be available. This includes: Simple Earn, BNB Vault, Defi Staking, ETH Staking, DOT slot auction, Binance Pool, Cloud Mining, Liquid Swap, Auto-Invest.

July 17th, 2023:

Crypto deposits will be unavailable. Aoid sending crypto to previously saved addresses.

All trading products will be unavailable. This includes: Spot, Convert, Binance NFT.

Binance EARN positions will be closed. This includes: Flexible Simple Earn, BNB Vault, Flexible Defi staking, Binance Pool, Liquid Swap, and Auto-Invest.

Binance Finance products will be unavailable. This includes: Binance Card and Pay.

Please pay attention to the following exceptions:

Crypto withdrawals remain available after July 17, 2023.

EUR to USDT Convert Market Order remain available to allow for crypto withdrawals.

ETH Staking: please redeem ETH Staking before September 14th, 2023, no ETH Staking rewards will accrue and be distributed thereafter.

Existing Locked Simple Earn, Fixed-term DeFi-Staking Products, DOT Slot Auction, and Cloud Mining: The digital assets you used to subscribe will be returned to your spot wallet, together with any remaining accrued rewards, at the end of their respective subscription terms as usual. No new subscriptions are available.

This email is directed to Dutch residents. Please make sure to update your residency if you have received this email while not residing in The Netherlands.

More info on the exact process per product can be found below. Although we are disappointed that this stage has been reached, we look positively to the future.

We will continue striving to obtain the necessary authorisations to provide our products and services to users in The Netherlands. We will make every effort to be MiCA compliant, and will continue to communicate proactively, transparently and thoughtfully with Dutch regulators and other regulators around the world.

Kind regards,

Your Binance Team

#binanceNetherlands #MICA

Following the failure to obtain a virtual asset service provider license from the Dutch Central Bank, Binance, one of the world's leading cryptocurrency exchanges, has decided to end its operations in the Netherlands. As part of this decision, Binance has initiated a partnership with the regulated cryptocurrency exchange Coinmerce and offered users the option to transfer their assets free of charge.

Coinmerce announced that it would terminate all services for Binance users in the Netherlands on July 17, 2023, and encouraged users to transfer their assets before that date. The referral partnership with Coinmerce is supervised and approved by De Nederlandsche Bank (DNB), the central bank of the Netherlands.

Transfer Process and Guidelines:

Jaap de Bruijn, CEO of Coinmerce, stated, "Our priority is to ensure a smooth transition. These users need to have their transactions resolved urgently. Dutch users' crypto assets on Binance will be transferred to Coinmerce through a controlled transition process." Users who wish to participate in the transfer will receive information via email about the next steps to securely and easily transfer their assets to Coinmerce. #Binance #Netherlands #Coinmerce

Binance and Regulatory Pressure:

Recently, Binance has faced increasing regulatory backlash, particularly in Europe, and the Netherlands' rejection is the latest example of this trend. Alongside the Netherlands, German regulators also rejected Binance's application for a crypto custody license in late June. Binance has stated that it will continue to work towards finding a solution with German authorities. Additionally, Binance has fully withdrawn from Austria, Belgium, and Cyprus for various reasons.

Focus on the Future:

Binance has stated that it will continue to remain committed to the European markets but will shift its focus towards preparing for the upcoming "Markets in Crypto Assets" (MICA) regulations. MICA will come into effect in the coming months and establish a regulatory framework for the crypto industry in the European Economic Area. #MICA

In Summary:

Due to the Dutch Central Bank's refusal to grant a virtual asset service provider license, Binance has decided to cease its operations in the Netherlands. Through its partnership with Coinmerce, Binance has offered its users the opportunity to transfer their assets free of charge. As Binance faces regulatory pressures in Europe, it continues its efforts to comply with the upcoming MiCA regulations and maintain its focus on European markets.