Despite the sharp devaluation of crypto assets in 2022, the crypto market continued its expansion. Global recognition of digital assets and investments by some countries to attract companies in the sector gained momentum even during the bear market that began in late 2021.
In 2022, countries like Brazil, the United States, and Europe discussed the regulation of crypto assets. Prohibition and restriction gave way to propositions and initiatives to create legislation for the crypto market.
In Brazil, for example, regulating the crypto market was recently approved and sanctioned by President Jair Bolsonaro. In 180 days, the bill will go into effect, establishing rules for crypto platforms and investors.
Creating a regulation for the sector presents a recognition of crypto assets. In the United States, institutions are discussing a law for digital currencies that could cover the entire country.
In Europe, legislation on crypto assets has also been passed. It is considered an initiative that could result in regulation for digital currencies that all member countries of the EU should adopt.
Around the world, other countries have recognized the importance of crypto assets by regulating the market. This recognition represents an important step for the industry, which should continue its expansion backed by legislation that protects both the investor and companies operating in the area.
Attracting crypto companies
The crypto market has reached over US$ 3 trillion in capitalization in recent months, and the sector’s growth has caused countries to attract more crypto asset businesses.
In Zug, Switzerland, where Transfero’s headquarters are located, the place has become a real crypto Silicon Valley, attracting companies active in the market. The same is true of Malta, for example.
In the United Arab Emirates, considerable friendly legislation attracts large crypto market companies. Binance is one of the exchanges that has opened a headquarters in the country.
While Zug, Switzerland, aims to establish itself as the crypto Silicon Valley, the United Arab Emirates could be the world’s crypto Wall Street. Legislation aimed at market companies and tax incentives supports the sector’s expansion even though crypto assets are currently in decline.
On the other hand, In Brazil, the city of Rio de Janeiro is attracting crypto businesses with the Maravalley Port project. The so-called wonderful city has developed a crypto business hub and aims to attract talents and companies to the area.
In addition, the recognition and expansion of the crypto market are noted in the adoption of digital assets. For example, in Rio de Janeiro, taxes such as property tax (IPTU) can be paid in crypto assets starting in 2022.
Thus, the crypto market continues its expansion and adoption, and has not been affected by the bear market. In addition to improvements in technologies such as more robust blockchain networks and the emergence of new solutions such as DeFi, NFTs, and DApps, a global recognition movement of digital currencies is underway. Learn more about it in this article on how Maravalley Port aims to attract new crypto market talents.