Leading enterprise Layer 1 blockchain company, Vechain, has applauded Europe’s regulatory clarity over cryptocurrencies. The blockchain company considers itself one of the great beneficiaries of the enhanced clarity of established crypto rules.
VeChain stated its position after the European Council adopted the world’s first comprehensive set of rules from crypto assets regulation, MiCA. The Council’s new rules seek to protect investors by requiring crypto firms to be authorized by the European Union (EU). The authorization will allow them to serve customers in a bloc and to comply with anti-money laundering and anti-terrorism financing rules.
Before they passed it on Tuesday, May 16, 2023, EU member states and the parliament already approved MiCA. The impact of this approval resulted in the influx of VC investment into European projects. From 5.9% in Q1, 2023, VC investment into European projects soared to 47.6% in Q2.
VeChain sees MiCA’s approval and final adoption as a significant milestone in the blockchain industry’s development. It will improve the confidence level of investors, knowing the law protects them, and encourage more investments into the system.
According to reports, VeChain hopes to secure a sizable portion of the VC investments, considering its status as one of the top blockchain companies in the European region. The report claimed that traders will become more confident in holding VeChain’s native token VET, anticipating that VC inflows into the network will increase.
On-chain data shows that the development activity level has reached its highest level in four weeks. However, investor sentiment has not followed the same pattern, and VET’s on-chain volume is yet to be affected by the latest positive vibe in the VeChain ecosystem.
From traders’ perspective, VET’s price could benefit from the ability of VeChain to attract investors. That could be more probable in the long term, even though MiCA’s adoption by the European Council could support investor confidence and trigger some demand.
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Source: Cryptocurrency - investing.com
