The adoption of cryptocurrencies in the European Union is limited by “fragmented” rules

The institutional acceptance of cryptocurrencies in the European Union is developing relatively slowly. And this happens despite the fact that in the United States there are significant changes in terms of regulation of digital assets. According to the chief legal adviser of Brickken Elicees Fabreg, this situation is mainly due to a very difficult regime for regulating cryptocurrencies in Europe. Therefore, the adoption of digital assets at the institutional and corporate level remains limited.

“The current indecision indicates a structural gap. In particular, Europe will still have to form a clear position in the context of the attitude to bitcoin as a backup asset, ”the specialist emphasized. In itself, the economic model of the flagship of crypto -ripe favors the early investors.

This can encourage more institutional organizations to consider investment opportunities in this asset. Since the victory of Donald Trump in the US presidential election, Bitcoin on growth dynamics overtook a large number of main assets in the global stock market.

According to Bitpanda experts, large organizations may underestimate the demand of investors for cryptocurrencies at 30%. Experts also concluded that this situation is determined by the complex structure of the regulation of this segment in Europe.

The institutional landscape itself in this region has been fragmented, and therefore many conservative investors are still limiting investment in digital assets.

The trend is also traced that European investment funds do not show high interest in high -risk assets. In particular, they fear the high volatility of digital assets. And this situation contrasts greatly with what is observed in the USA.

Author

Andrey Alexandrov