Bitcoin is an important innovation which needs an advanced regulation to unlock its whole potential. A clear and advanced regulation will bring convenience to Bitcoin entrepreneurs and help them to find new usages and push Bitcoin to the public.
The condition in American market
The New York regulation “BitLicense” released in April stopped accepting application in 8th August.So far,there are 22 apps and 15 Bitcoin companies that left New York,including Poloniex、BitFinex and Kraken.what’s more,the Bitcoin mining pool “BTC Guid” chose to stop running.
Some companies like ShapeShift and Xapo also moved their headquarters from United States to Europe.
In March 2014 Texas securities commission stopped the cooperation with Balanced Energy LLC because the company accepted Bitcoin as its payment optional. The commission considered the act a kind of risk to the investors.
On the West Coast, California is coming up with anther regulation which causes any Bitcoin service to pay a non-refundable fee of $5000. Meanwhile the regulation has no guarantee,whether banks or the lawmaker. And the sum of money is not a small amount from small start-ups.
Alena Vranova,the Co-founder of SatoshiLabs,said: It is too difficult for the newcomer to enter the financial services.
So I have to say Europe becomes more and more attractive for bItcoin entrepreneurs.
Europe as the Bitcoin center?
Though Bitcoin is developing very actively,there are few of media reports. The sounds of European start-ups are covered by American peer.There is only 25% Hash Rate of Bitcoin network in Europe, so it is normal that you consider American the No.1
But Europe is always developing and innovating around Bitcoin,like the first generation Bitcoin exchange Bitstamp which has fully executed KYC and multi-signature technology.
Other European Bitcoin companies including Trezor,LedgerWallet,Bitbond and the creator of color coin “ChromaWay” are also creating their applications.
Bitcoin is an overturn and innovation which has really realized globalization. It will be success based on its usages. Advanced regulations are necessary for the birth of innovation.
Bitcoin needs to enable governments to see its potential and to let it grow according to the speed of itself.
Like Kaja Ribnikar of Bitstamp said: The European regulators are aware of that Blocking Bitcoin means kill a very powerful and helpful ecosystem.
The CEO of SatoshiPay (Meinhard Benn) said: The U.S laws bring the advantages to rich companies but stop innovation.
We should keep away from this kind of circumstance,while advanced regulations can open the door of innovation. Many European countries provide a legal framework which encourage Bitcoin entrepreneurs and allow them to create or find new Bitcoin usages.