Circle, Ripple and other crypto giants came to Paris seeking “regulatory clarity” and returned with a reality check – DL News

Last Wednesday morning, Verena Ross, executive director of the European Securities and Markets Authority, gave a reality check to the hundreds of crypto industry players who attended Paris Blockchain Week.

They wanted to know more about the European Union’s famous “regulatory clarity” regarding cryptocurrencies. This was a very welcome contrast to the repression pursued by US regulators.

However, Ross said MiCA (Cryptocurrency Market Regulation) is not a panacea for crypto ventures and disputed the idea that the EU is crypto-friendly.

“I don’t know that I would necessarily use the word friendly,” she told the 200 or so people in attendance.

“What we have done in Europe is that legislators have created a true regulatory framework specifically for cryptocurrencies. This replaces something like a patchwork of different national approaches. Thing.”

That seemed fine to many U.S. crypto experts, who are struggling with regulatory crackdowns in their home country.

hectic market

For four days last week, some 10,000 developers, investors, media members, and various executives gathered in the French capital to gather insights and network.

Held in the Louvre's basement conference center, attendees heard from Binance CEO Richard Teng, Ripple CEO Brad Garlinghouse, and Circle CEO Jeremy Allaire.

While Bitcoin ETFs and the vibrant market got most of the attention, so did the realities of operating a business in an increasingly regulated world.

France, among all nations, has done everything in its power to present itself as an antidote to such anxieties. French authorities have welcomed crypto ventures with tax breaks and investment incentives.

“In Europe, there was no other choice but France,” Dante Disparte, Circle’s chief strategy officer and head of global policy, said during a panel discussion at the stablecoin issuer’s event.

“Of course, it's not just the domestic opportunities, the depth of capital markets, the depth of talent, the technology base and, frankly, the regulatory clarity.”

However, ESMA's Mr. Ross offered a calm opinion. “The important thing, obviously, and that's the call to everyone here, is to be prepared,” she said.

“Don't underestimate that there's going to be a new administration and you need to follow it.”

bet big on france

Still, Allaire and Circle, the issuers of the $32 billion USDC stablecoin, are betting big on France.

In 2023, Circle obtained conditional registration as a digital virtual asset provider in France and established a European office in Paris.

The company has also hired Coralie Billman, head of one-time payments for PayPal's Luxembourg office and JPMorgan Chase in Paris, to lead the effort.

In May, French President Emmanuel Macron invited 200 business leaders, including Disparte, to Versailles.

With MiCA set to enter into force by the end of the year, national regulators in the 27 EU member states are busy developing regulations to complement this ground-breaking system.

A key part of this administration is to ensure that all crypto ventures are registered and licensed to protect investors from the predatory practices prevalent in other markets such as Asia.

Passport issue

For cryptocurrency businesses such as Circle, the practice of “passporting” becomes critical as it allows them to serve customers across blocks from one region.

“We have set up offices and infrastructure to be able to issue coins outside France,” Birman said last Monday. “We want Europe and France to become privileged markets for our company.”

In a former vault once used by the Banque de France, Allaire took to the stage at Pavillon Vendôme last week to promote Circle's euro-backed stablecoin EURC and sketch out his strategic plan.

“Today, blockchain technology, web three, and digital assets are becoming major national priorities around the world,” Allaire said.

“It's a top priority for the French government. It's a priority for the Japanese government. It's a top priority for the Hong Kong government.”

To get his point across, he presented one of his favorite cryptograms, a diagram of a smaller circle inside a larger circle.

The small circle represents the value of stablecoins today (approximately $142 billion), and the large circle represents the unencrypted version of electronic money around the world, which is more than $21 trillion.

Allaire's takeaway: Stablecoins have the potential to grow over 850x.

And Circle is considering an IPO this year, which could make it invaluable to customers and investors.

why? That's because circles follow rules, Allaire said. In France it means MiCA.

“USDC and we expect that under MiCA, the EURC will play a very important role in how digital cash moves in and out of all of these different capital market structures.” said.

“That’s where growth comes from.”

At Paris Blockchain Week, some US crypto executives reiterated the often-touted idea that the EU will pull crypto activities away from the US.

“We're seeing the United States almost cede leadership in innovative technology,” said Eric van Miltenberg, Ripple's senior vice president of strategy. DL News.

On Wednesday, news broke that the SEC had notified decentralized exchange Uniswap that it could be charged with violating U.S. securities laws.

Upon returning to Paris, I had another concern: whether I would be on the guest list for a particularly high-end side event.

red carpet

That night, conference attendees flooded Faust, a chic cocktail bar on the banks of the Seine. The Solana Foundation, a data provider called Pyth, and the popular meme coin Bonk were hosting the reception.

Card guards from Alice in Wonderland lined the red carpet leading to the bar. Once inside, a statue of a white rabbit was watching over the party participants. Behind the scenes, the court jester was leading the others to a hidden bootlegger.

Behind the venue's long bar stood a giant red and white sand sculpture of a tower. Next to it, bright orange, red and white lights illuminated the Bonk logo.

Few were upset by the SEC's move against DeFi's $7 billion trading platform. After all, Uniswap Labs is based about 6,000 kilometers from Paris. This is far from weak-minded crackdown or enforcement.

On the contrary, the mood is much more optimistic. Regarding Circle's possible IPO bid this year, one of Circle's employees said he had only one regret.

“I wish I had more assets,” they said. DL News.

Liam Kelly is DL News” Berlin correspondent. To contact him, liam@dlnews.com.