The crypto fund domicile decision.
Digital asset regulations are evolving, particularly in Europe, where two models have emerged: the EU's Markets in Crypto-Assets (MiCA) and the UK's fragmented approach post-Brexit. MiCA provides a harmonized regulatory framework across all EU member states, allowing crypto service providers to operate throughout the EU with a single license, enhancing legal certainty and reducing compliance costs. The UK is developing new laws under its "Plan for Change" to integrate crypto into existing systems, focusing on user protection and transparency, while also exploring a joint regulatory sandbox with the US. Crypto fund managers face strategic decisions on domicile, weighing MiCA's stability against the UK's flexibility. Luxembourg is positioned as a favorable EU location for crypto funds due to its strong financial infrastructure. Both regions may complement each other in the evolving digital asset landscape, with the UK fostering innovation and the EU providing regulatory clarity.
