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The home of the cryptocurrency and blockchain industry has been a topic of debate ever since the bull market faded and the bear took its place. The cryptocurrency industry has been, and continues to be, one of the most innovative developments of the 21st century.Amid the technological advancement of the industry, countries and their regulators need to speed up the development of frameworks that will allow the industry to flourish. Recent regulatory developments within Asia specifically in Hong Kong and Singapore coupled with developer talent and an appetite for investment have positioned the region as a global hub for blockchain.

The United States has historically been the global leader in innovation. The countrys innovation ecosystem was unrivalled globally, but blockchain technology has bucked this trend.

Across the industry, there is a need for clarity around cryptocurrency regulation. This is in large part because US government officials themselves seemingly cannot decide how the space should be regulated, leaving key players in a constant state of limbo.

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Following the latest regulatory moves from US lawmakers and officials, some Web3 leaders, cryptocurrency companies and blockchain developers feel they have no choice but to establish operations elsewhere. As it stands, the US will miss out on being a leader in the blockchain space.

MiCA will apply across 27 European countries, but before it is a fully active framework, the regulatory authorities and governments in each of these countries still have work to do. Therefore, the goal of the MiCA framework going into effect by mid-2024 could be out of reach.

Until the framework is fully fleshed out, cryptocurrency and blockchain companies must continue to err on the side of caution when setting up a base of operations within any European country.

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As for the cryptocurrency landscape in the Asia-Pacific, regulatory moves and clear guidelines have made the region one of the fastest-growing cryptocurrency economy globally. For example, cryptocurrency firm Ripple recently secured an operating licence in Singapore, allowing its subsidiary to operate without transaction thresholds. The results of these moves speak for themselves, with Ripple saying that 90 per cent of the companys business now comes from outside the US.

As the US continues to signal to the cryptocurrency space that it is not open for business, the choice for blockchain developers is increasingly to move operations into friendlier countries in the Asia-Pacific. Their progressive outlook has helped turn the region into one of the fastest-growing hubs for Web3 innovation, establishing Asian economies as the global leaders in the blockchain industry.

Dominic Williams is founder and chief scientist of the DFINITY Foundation

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Why Asia, not the US, will be key for cryptocurrency in next bull cycle - South China Morning Post