These 5 countries may enter the next bull run

The crypto industry is currently struggling - at least in the US. Elsewhere, Web3 companies are thriving under clear regulations, paving the way for another bull run.

The US is currently giving the crypto industry a hard time. Authorities are shooting crypto-friendly banks and crypto exchanges, issuing harsh threats, demanding large fines and issuing bans. The industry is trembling - and looking the other way. In other countries, however, crypto companies are welcomed with open arms and are working on sensible regulations for the future. In these five countries, the next bull run is being forged.

UAE: with regulations toward the goal

The United Arab Emirates (UAE) introduced its first crypto regulation back in 2018. After that, however, it will be another four years or so before Web3 companies can set up shop in innovative cities like Dubai. Regardless, the megacity has been betting on blockchain development for several years and even has its own crypto-payment system. In addition, the Persian Gulf country is also looking to expand its mining sector.

Despite extensive regulation, crypto companies still have problems with regulated bank access. The reason are the country's complications with the Financial Action Task Force (FATF). This makes it difficult to access the international banking system and, therefore, to do business in the crypto industry.

However, the UAE is working on this at full speed. Under new regulations, for example, the issuance of privacy coins bans. Experts expect the FATF restrictions to be relaxed by the end of the year. This should help the country grow into a new cryptolocation.

Singapore: population optimistic

Southern Malaysia is also screwing the next bull run. True, last year the Singapore government banned crypto advertising and denied license applications. But as a Coinbase study shows, public interest in Bitcoin and Co. has increased significantly. According to the study, about 25 percent of the population believes crypto is the future. Also local banks noticed this and expanded their services for retail investors in early 2022.

The government is also showing ambition: As part of a research project studies they the tokenization of assets using smart contracts. Meanwhile, the implementation of current regulations is a double-edged sword: on the one hand, they want to crack down on potential misconduct in the cryptoscene "brutally and relentlessly harsh." On the other hand, it may stifle innovation. So there is no free pass for crypto service providers in Singapore. But there is no need for that either. The rules are "fair, clear and offer a good mix of business-friendliness and customer security."

El Salvador: Still on the radar?

In the small state on the Pacific coast, hasn't the experiment failed long ago? After all, only 11 percent of the population uses Bitcoin in daily life. Overall, the results are rather mixed. But how one interprets acceptance depends on one's perspective. The Bitcoin-wet is, after all, only 19 months old. So it would be wrong to label the Central American experiment as a failure already. Getting a society used to a completely new form of money overnight is a very tall order.

Rather, the decisive factor is that El Salvador has a so-called first mover advantage with the Bitcoin law. The government around President Nayib Bukele is setting a precedent: other countries can learn from its mistakes. Liechtenstein, for example, is following suit and is considering also introduce Bitcoin as legal tender. El Salvador, meanwhile, continues to work on regulation of digital assets. For example, the country is preparing to issue Bitcoin bonds - a good sign for investors.

Confederation of European States: MiCA strengthens industry

With the MiCA Regulation Europe is the first major economic zone to get its own crypto regulation. The regulation brings especially drastic changes for service providers, who will have to comply with a host of new rules starting in 2025. For example, crypto providers (so-called Virtual Asset Service Providers, or VASP for short) will need a mandatory license if they want to operate in the EU. However, the license will then apply to the entire economic zone.

In addition, the MiCA regulation requires crypto projects to publish a "white paper" detailing the operations and design of the respective coins or tokens. For citizens, these measures bring one thing above all: consumer protection. The EU should thus become more attractive for both service providers and investors and drive the next bull run.

Hong Kong: glimmer of hope for crypto market

The Asian financial metropolis advances to become the new hotspot for Web3 and blockchain companies thanks to principled crypto-friendly regulatory policies. After the government issued a policy statement on virtual asset (VA) development last fall, numerous start-ups are showing interest. In March, Hong Kong clarified its strategy in the crypto sector: Web3 is "not hype" but a "paradigm shift."

Particularly important to its future role in the bull market: its proximity to China. Hong Kong is the world's fourth largest financial center and thus an important repository of capital. Moreover, the special economic zone is considered a point of contact for the Chinese to tap capital from the mainland, which is isolated from the international financial market. So what Hong Kong is enabling with crypto-regulation has a big impact on the world's second-largest economy. Granted: The financial center is cracked by China's strong influence. Despite this uncertainty, Hong Kong could become the new Web3 hub because of the upcoming regulations.

Conclusie: regulation could cause new bull run

The economic zones mentioned above make clear what is needed for the successful further development of the crypto industry: regulation. The contrast is the US. The authorities still stick to existing regulations. The SEC, CFTC and IRS use methods that have existed for 50 years and interpret regulations "regardless of whether they are valid or not."

Experts see regulation as an indicator of the next bull run. When exactly that will begin, however, remains to be seen. Nevertheless: the efforts of many countries are paving the way for investors. Meanwhile, the crypto bulls are quietly waiting.