EU Crypto Rules Leave Gaps for Foreign Firms

The European Union's new crypto regulations went into effect on July 1st, but it seems that many companies are finding ways to bypass them. The EU aimed to regulate cryptocurrencies and protect investors from scams, but the execution has been a challenge for some firms. Only about 20% of Europe's 1,200 registered crypto companies secured a license, leaving many others at risk of shutdown.

The regulations have had a mixed impact on various companies. While big brands like Coinbase were able to clear the bar, giants like Binance got kicked out. Meanwhile, in the US, Donald Trump signed the GENIUS Act last summer, which aims to support stablecoins - digital currencies tied to the value of the US dollar.

According to an Euronews exclusive report, the EU rules fail to regulate companies outside Europe, allowing foreign firms to bypass them. EU diplomats have already acknowledged that changes are needed next year to address this issue.