Is Europe The New Home For Bitcoin?

The tech sector has grown exponentially over the past decade, and most of that innovation has come from the United States. Industry giants like Google Inc GOOG, Microsoft Corporation MSFT and Apple Inc. AAPL were all born on American soil.

However, as financial technology emerges, some experts are predicting that it will be Europe which pulls ahead in that sector.

Cryptocurrency Friendly

Cryptocurrencies like bitcoin are still a relatively new development in the fintech sector, but many believe that blockchain, the ledger like system that powers bitcoin, will be one of the most important innovations of the decade. Despite that, the general public has been hesitant to embrace cryptocurrencies after the coins' reputations were marred by several high-profile scams.

Many believe that the only way to gain mainstream approval is by laying out regulations that govern cryptocurrencies in order to protect consumer interests.

Regulations That Work

Critics say that regulations undermine the reason bitcoin was developed — to create a decentralized financial system free from traditional barriers. With this in mind, many U.S. states have begun to crack down on bitcoin businesses in hopes of making the industry more streamlined and safer to use. However, in New York, a new rule requiring firms in the industry to apply for bitcoin licenses led to the shutdown of 15 bitcoin companies, which opted to take their businesses elsewhere rather than complying with the new rules.

Progressive Regulation

In Europe, the response by regulators has been vastly different. Many major cities like London have expressed a need for bitcoin regulation, but have worked together with major industry players in order to create a set of rules that helps the industry continue to grow and develop. For that reason, many believe that cryptocurrency-based firms will make their homes in Europe rather than the US.