Search Inside Bitcoins

CEO of Ripple says more companies will move to Europe because of confusing US regulations

Join Our Telegram channel to stay up to date on breaking news coverage

Some CEOs are going across the Atlantic to restart their businesses because the SEC is targeting numerous well-known crypto enterprises.

Like we reported previously, the US government, through its agencies SEC and CFTC, has been engaged in a battle against crypto companies, under the guise of regulations. These actions have been referred by some as “Operation Choke Point 2.0” and have been criticized as driving solid, legitimate cryptocurrency businesses out of the U.S.

The SEC has stepped up its action against the cryptocurrency market, pursuing firms and initiatives it claims were peddling unregistered securities. It put up regulations in February that would alter which cryptocurrency businesses may hold client money.

The agency warned cryptocurrency exchange Coinbase in March that it had discovered possible breaches of US securities law, which is is normally the last action before the SEC brings charges. The SEC also accused Bittrex, a platform for exchanging cryptocurrency assets, and its former CEO of running an unlicensed exchange, and targeted exchange Binance as well.

Brian Armstrong, the CEO of Coinbase, recently stated that he was thinking about moving to Europe. Similarly, Brad Garlinghouse, CEO of Ripple, stated on CNBC on Thursday that “confusing” rules in the United States will drive more crypto businesses abroad.

It’s also no accident that Europe has emerged as a possible victor amidst the confusion, particularly after the continent passed more definite crypto regulations with its Markets in Crypto Assets (MiCA) guidelines earlier this month.

The misunderstanding that has prevailed in the U.S., he said, has benefitted Europe significantly. “Frankly, it’s why you’re seeing entrepreneurship and investment flowing into other jurisdictions,” he said.

In particular, French authorities are trying to promote its regulatory framework in order to entice American businesses. They are well aware of this potential. “In France, we have the advantage of having a clear framework,” Owen Simonin, CEO of Meria, a cryptocurrency investing platform with headquarters in Metz, France, said in an interview with publication Decrypt.

With the new CASP regime, France is probably going to adapt its framework to the European level. It provides a precise, defined structure that entices significant foreign corporations to visit us and so makes the European market available to them.

The Secretary General of France’s Autorité des Marchés Financiers (AMF), Benoît de Juvigny, has already extended an invitation to American businesses to benefit from current and upcoming European crypto legislation.

“In France, we are proud to be pioneers with the crypto service asset provider regime, known as PSAN, that was legislated in 2019,” he said to reporters on Wednesday.

Players from the United States are welcome to participate in the French regime in the near future and the European arrangements beginning in 2025. With our American peers, we keep up positive contacts and frequent communication.

The CASP (Crypto Asset Service Provider) status will be introduced with the adoption of MiCA regulations by European legislators the following year. At the European level, this is comparable to PSAN (“Prestataire de Services sur Actifs Numériques” or “Digital Asset Services Provider”) in France. This position is best described as a Virtual Asset Service Provider (VASP) in the United States.

With a new European status based on the French one, they are now able to abide by impending European legislation.

Government support of crypto

There are already 72 registered cryptocurrency companies in France, with that number projected to expand as a result of the recent adoption of MiCA, which has encouraged many businesses to get ready for the new laws.

In order to localize its main product, EUROC, for the European market, Circle, the company behind the second-largest stablecoin in the sector by market capitalization, is requesting dual registration in France. Other significant cryptocurrency firms have also registered with the AMF, including Digital Currency Group’s Luno, Binance,, eToro, and

Until 2026, cryptocurrency platforms are permitted to operate in France without a formal license, allowing them to offer services with few restrictions. However, even before the EU’s requirements go into effect in January 2024, these businesses will need to obtain a full operating license.

Simonin stated that even though the PSAN registration is only little, the approval that would require strengthened registration at the European level will place a heavy burden on all businesses. This has a double-edged effect; while it will restrict abuse and offer structure, it may also stifle innovation. A systematic framework is necessary in a situation where personal savings are seriously at stake, nevertheless.

As part of the transitional procedures put in place earlier this year in advance of MiCA, businesses submitting applications starting in July will go through a more thorough registration procedure. A conflict of interest policy and evidence of reliable IT systems are required for this approach.

The MiCA laws, set to go into effect in 2025, will grant the ability to serve the entire European market and will cover a wider range of services, such as portfolio management, investing, and advising in the cryptocurrency space.

There are existing crypto regulations even though they aren’t perfect yet

But the French government must yet clarify certain other points, and new rules must be published in the future.

We still have a rather flexible framework, and many issues, like NFTs or DeFi, have not yet been covered, according to Simonin.

Taxation is the primary topic for discussion in the near future. We have the PACTE statute, which has certain benefits but also imposes taxing on profits without providing for loss balancing. However, as long as we continue to use cryptocurrencies, France has a system that permits us to avoid paying taxes even when we make capital gains. French regulation, whether one likes it or not, has the advantage of being transparent.

Regulators in France and in other parts of Europe are acting more clearly than their American colleagues, even though there are certain unanswered questions thanks to EU-wide crypto laws. This is why it looks like in market that evolves as quickly as the cryptocurrency space, that might be enough to convince at least a few companies.


Wall Street Memes - Next Big Crypto


Wall Street Memes
  • Early Access Presale Live Now
  • Established Community of Stocks & Crypto Traders
  • Featured on BeInCrypto, Bitcoinist, Yahoo Finance
  • Rated Best Crypto to Buy Now In Meme Coin Sector
  • Team Behind OpenSea NFT Collection - Wall St Bulls
  • Tweets Replied to by Elon Musk
Wall Street Memes

Join Our Telegram channel to stay up to date on breaking news coverage

Read next

Don't see the answer that you're looking for?

Ask us Now!