Concerns have arisen about the European Union’s (EU) competitiveness in the web3/crypto industry as it struggles to attract top cryptocurrency venture capitalists (VCs). Patrick Hansen, the head of policy at Circle, has noted that only a few of the top 25 crypto VCs are based in the EU, and this lack of venture capital has been a persistent issue in the region, hindering the development of Web2/tech startups.
The situation has remained unchanged in the web3/crypto industry, with regulatory uncertainty and lack of capital being major factors contributing to the EU’s inability to attract top crypto VCs. Some experts believe that the venture capital scene in the EU may not be as welcoming as it seems, as securing funding for pre-seed rounds can be challenging.
To address this issue, the EU needs to provide a conducive environment for investment and growth to become a hub for blockchain technology and cryptocurrencies. Meanwhile, the European Parliament has reportedly approved the first Cryptoassets Regulation Act, marking the first European legislation concerning crypto assets.