With Miami from owning Held the “biggest ever” Bitcoin event, It seems reasonable to ask: Does the entrepot of the Sunshine State really have the conditions to become the “cryptocurrency capital of the world”? — A new role foreseen by the energetic mayor.If not, can Miami Be at least the next crypto valley — That is, the cradle of cryptocurrency and blockchain innovation like the Swiss canton of Zug?
The optics certainly looks good.As the New York Times famous In the Bitcoin 2021 report last week At the gathering, “This city is completely encrypted”, Bitcoin ATMs are all over the Wynwood community in Miami.At the same time, the cryptocurrency exchange FTX has ensured Miami Heat home naming rights, And the mayor of Miami, Francis Suarez (Francis Suarez) also proposed to allow citizens Pay taxes with cryptocurrency, Among other things.
But others warn that there is still a lot of hard work waiting-before Miami can claim to be the capital of anything in the fast-growing crypto world, there must be a favorable turn in regulatory/legislative events.
Enabling legislation is crucial
Zachary Kelman, the managing partner of Kelman Law, told Cointelegraph: “If the Florida Legislature does not pass legislation that supports encryption, Miami will not be able to do this”, and then raised the question that Bitcoin 2021 is a milestone event and also A harbinger of future events. Kelman replied: “Yes, but largely due to the cryptocurrency bull market that occurred during the pandemic, the demand for such meetings has been suppressed.”
Kelman is not a crypto skeptic-quite the opposite. He belongs to the Florida Blockchain Business Association, which is actively lobbying for the necessary state legislation to support encryption. He said that if this is guaranteed, even without federal legislation, Miami could become a cryptocurrency center because:
“The fund transfer rules are mainly governed by the state legislature and are the key to the vigorous development of crypto businesses in certain jurisdictions. Most of the activities are still in the transaction area, followed by the growth of’DeFi’ projects, which are also usually part of the national currency transfer rules. Category.”
Compared to other emerging encryption centers, Miami has other advantages — even Wyoming, it already has state laws that support encryption — Hemang Subramanian, an assistant professor at the Florida International University School of Business, told Cointelegraph. Miami is an international city with developed banking infrastructure, and many venture capitalists and high-net-worth individuals are interested in funding innovation. In addition, “it is one of the country’s largest financial centers, with a large port and a large foreign population from South America, the Caribbean and Europe.”
Kobre & Kim LLP’s lawyer Benjamin Sauter agrees with Subramanian’s view that Miami is an attractive destination and business center, “especially when digital currencies start to sweep the Latin American market.” He told Cointelegraph that there is no state in Florida. Income tax-this is another bonus item. However, even with favorable state legislation, these advantages may still not turn the city into a global cryptocurrency center:
“Most serious legal work needs to be done at the federal level. Most current discussions are focused on anti-money laundering, international cooperation and asset recovery, and tax enforcement. Wealthy individuals and companies [crypto] Space is better to plan for government review and enforcement measures in these areas, rather than hold your breath in Miami to quickly resolve the issue. “
Lane Kasselman, Chief Commercial Officer of Blockchain.com U.S. headquarters from New York to Miami, Understandably optimistic about the company’s sunny new second home, and told Cointelegraph, “Miami is already [new] Crypto Valley, the announcement last week proved this. He added that Mayor Suarez is a strong supporter of technology investment in the region, “Miami’s enthusiastic regulatory environment will help promote crypto innovation. “
View Miami from abroad
How about seeing the scenery from farther away? Thomas Nägele, a lawyer who played a role in the evolution of Crypto Valley, told Cointelegraph, “I think Miami is in a very good position to become a blockchain center like Switzerland’s Crypto Valley and the cryptocurrency country Liechtenstein,” while adding several caveat:
“The blockchain center is not something that can be simply imposed; it must be supported by the community, it needs a certain number of companies active in the field, and last but not least, it needs legal clarity.”
Nägele emphasized that the last item of “legal clarity” is of utmost importance. “The perfect example of this is Liechtenstein’s TVTG (also known as the Blockchain Act), which provides a legal framework for the tokenization of assets.”
Ian Simpson, senior marketing and communications manager of Bitcoin Suisse AG, a company located in the Crypto Valley, told Cointelegraph, “One of the challenges facing big cities and countries is that encryption can be’swallowed’ by the broader technology ecosystem, which can downplay the impact on blockchain projects. The attraction.” He added: “Close contact and exposure to creativity, talent and quality services are some of the factors that make Swiss Crypto Valley what it is now. We will have to wait and see how the situation in Miami develops.”
When asked whether Bitcoin 2021 should be considered a milestone event in the crypto and blockchain space, Simpson replied that although this is a welcome event, especially after all the lockdowns in the past year, “it seems It does not mark any major changes or community development-as we have seen, it has absolutely no impact on the market.”
As far as Nägele is concerned, he said that most European countries are on the quarantine list and unable to participate in the Bitcoin 2021 gathering is “sorry”, “but my friend told me that this is an amazing event, and it is always a good ecosystem. Beginning.” Although Kasselman commented: “There is no doubt that we have reached a critical turning point. Cryptocurrency has moved from a niche to the mainstream,” he further explained to Cointelegraph:
“It is worth noting that this conference is not only about Bitcoin, but also about the ecosystem: from DeFi to NFT to SushiSwap. Encryption is an industry, not just a [single] High-value tokens. “
New center of gravity?
In general, is it possible to identify the nerve center of the crypto/blockchain world, and if so, will it change? Nägele said that this may change from time to time, “It depends on the attractive conditions of the relevant companies. Europe, especially Switzerland and Liechtenstein are undoubtedly early adopters, and recently, Asia is catching up. I really look forward to it. Miami is welcome to join the club, but in the end, I hope we will treat the world as a crypto hub.”
Simpson added: “With its technological leadership and the recent Coinbase IPO, the United States has a strong position in the blockchain and crypto space. However, Europe and Switzerland seem to provide more openness in terms of regulation, and Asia The ecosystem also has a lot of weight because of its size.” But he added that it is still difficult to point out a single center of gravity in the blockchain ecosystem.
“Although the United States and Europe have received a lot of media coverage, Latin America and Asia have the fastest growth in retail users,” Kasselman added. “As cryptocurrencies become more common in financial services, we will see emerging markets accelerate the adoption of core products, and mature markets will increase their use of the expanding cryptocurrency ecosystem.”
“I think Miami can easily become the cryptocurrency capital of the United States, if it doesn’t have one yet,” Kelman pointed out. “However, without the support of federal legislation, Miami would not be able to become the international cryptocurrency capital,” and recent signs “show that in the short term the federal legislation will be more onerous than a law that is friendly to cryptocurrency.”
Subramanian said that regulation is always accompanied by innovation. “In a democratic country, the people’s’will’ will eventually come into play.” In other words, the necessary state and federal legislation will eventually be introduced. “If Zug in Switzerland can be a haven for encrypted blockchains, so can Miami. It is more diverse, more international, and more capital-friendly,” he added.