Cryptocurrency fundraising now centered in Europe and Asia

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Posted on: April 6, 2020 10:11 pm EDT

As regulators in the US continue to suppress crypto innovation, projects are turning to other countries to launch

Perhaps due to the increased regulations from the authorities and the constant push from the US Security and Exchange Commission (SEC), most of the fundraising activity in the cryptocurrency industry is shifting out of America. According to the report made by Big Four auditing firm PwC, it is now finding better reception in Europe, Asia, the Middle East, Africa and the Asia Pacific regions. This is per PwC’s 2nd Global Crypto M&A and Fundraising Report for 2019, which discussed the fundraising efforts.

According to this report, any crypto-based projects received 18% less funding, and mergers and acquisitions in the same space declined by 40%. While the overall funding decreased significantly on one side of the world, the Middle East, and Africa (EMEA), and the Asia Pacific regions (APAC) are getting bigger shares of the pie, which recently got larger. They both saw a 44% increase in combined fundraising and, with the M&A deal back in 2018, the percentage grew 51% last year. During that same period, the whole share combined with the M&A deal value decreased from 55% to 48%. It can be concluded from this report that the number of funds in the crypto space was more significant in America than in any other region.

“2019 saw APAC and EMEA play a bigger role in the global crypto M&A and fundraising space. We expect to see this trend continue in 2020. In particular, we expect to see more activity from APAC and EMEA based family offices looking at the market turbulence as a good time to enter the market,” said PwC experts regarding the decrease in the American region.