Market News

EU Struggles to Keep Up with US and Asia in Crypto Regulation

The European Union (EU) is increasingly viewed as lagging behind the United States and Asia in the realm of cryptocurrency regulation.

Experts warn that the EU risks becoming a “crypto flyover zone,” with legislative processes that are slower compared to the more agile frameworks adopted by its global counterparts.

Catriona Kellas from Franklin Templeton voiced concerns at the DigiAssets Conference 2025, highlighting that while Europe has a robust foundation, innovation is at stake.

The EU's Digital Ledger Technology (DLT) Pilot Regime aims to create an environment for tokenized financial instruments, but experts argue it requires more urgent revisions.

Despite introducing significant reforms in 2025, including stricter environmental regulations and the Digital Operational Resilience Act (DORA), these initiatives may not suffice against faster-moving jurisdictions.

The Markets in Crypto Assets Regulation (MiCA), which officially launched in 2025, aims to standardize crypto licenses across member states but has faced implementation delays.

Critics fear that these delays could stifle innovation and push crypto firms to more favorable regulatory environments, notably in the US and Asia.

As the crypto landscape evolves, the EU must enhance its regulatory frameworks and hasten the processes of compliance to avoid being left behind.

Without decisive action, the EU risks relegation to a mere observer in the increasingly competitive world of digital assets.

The question remains whether Europe can reclaim its leadership or will succumb to becoming a less influential player in the global crypto arena.