Crypto Fund Domicile Dilemma: EU’s Certainty vs. UK’s Innovation Flexibility

Fund managers are currently at a crossroads due to the differing directions of the EU and UK regarding crypto regulations. The EU’s MiCA regulation offers a clear legal framework and the ability to passport across member states, providing a sense of security and predictability. Conversely, the UK’s approach remains more flexible and focused on fostering innovation, which might appeal to entities seeking a more adaptable regulatory environment. This divergence compels fund managers to weigh the benefits of regulatory certainty against the advantages of a more innovation-friendly legal landscape.