EU Risks Becoming Crypto ‘Flyover Zone’ Between US, Asia: Franklin Templeton
The EU faces the risk of becoming a "flyover zone" for crypto as its legislative pace lags behind the U.S. and Asia. Catriona Kellas from Franklin Templeton highlighted concerns that Europe could fall behind due to slow legislative processes. The European Commission is acknowledging competition in the crypto space, with discussions around "MiCA 2," an update to the Markets in Crypto Assets legislation. The EU's DLT pilot regime aims to provide a regulatory sandbox for crypto companies. Reports indicate that exchanges Coinbase and Gemini are seeking operational licenses in Luxembourg and Malta to expand across the EU. Some regulators express concerns over rapid "passporting" approvals for Crypto-Asset Service Providers. As global digital asset adoption grows, an institutional attitude change among regulators is anticipated, with increasing pressure from governments to adapt regulatory approaches.
