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As Miami comes down from the top of hosting the biggest Bitcoin event ever, it seems reasonable to ask: does the Sunshine States warehouse really have what it takes to become the crypto capital of the world? -change ? a new role planned by its dynamic mayor. If not, could Miami at least become the next Crypto Valley, i.e. a cradle of cryptocurrency and blockchain innovation like the Swiss canton of Zug?
The optics certainly look good. As the New York Times noted in its coverage of last week’s Bitcoin 2021 rally, the city has gone all-crypto, with Bitcoin ATMs sprinkling across the Miamis Wynwood neighborhood. Meanwhile, the FTX crypto exchange has secured the naming rights to the Miami Heats arena, while Miami Mayor Francis Suarez has also offered to allow citizens to pay taxes with the cryptocurrency. , among others.
But others warn that a lot of hard work still awaits and regulatory / legislative events must take a turn for the better before Miami can claim to be the capital of anything in the fast-moving cryptovers.
Enabling legislation is essential
Miami cannot do this without the Florida state legislature passing pro-crypto legislation, Zachary Kelman, managing partner of Kelman Law, told Cointelegraph, following a question about Bitcoin 2021 is a milestone event that heralds great things to come. Kelman said yes, but in large part because of pent-up demand for such a conference given the crypto bull market that is occurring during the pandemic.
Kelman is not a crypto-skeptic, quite the contrary. It belongs to the Florida Blockchain Business Association, which is actively lobbying for the national legislation necessary for crypto. If this is secure, Miami could become a crypto hub, even without federal legislation, he said, because:
The rules for transmitting money, which are primarily governed by state legislatures, hold the keys to enabling crypto businesses to thrive in a particular jurisdiction. Most of the activity remains in the exchange space, followed by the growth of DeFi projects, which also often fall under the rules for the transmission of state money.
Miami has other advantages over other emerging crypto hubs, even Wyoming, which already has favorable state laws for crypto, told Cointelegraph Hemang Subramanian, assistant professor at Florida International Universitys Business School. . Miami is an international city with a developed banking infrastructure, and many venture capitalists and high net worth individuals are interested in financing innovation. In addition, it is one of the largest financial centers in the country, with a large port and a huge expat population from South America, the Caribbean and Europe.
Benjamin Sauter, lawyer at Kobre & Kim LLP, agreed with Subramanian that Miami is an attractive destination and a business hub, especially as digital currencies begin to take the Latin American market by storm. Florida also has no state income tax, he told Cointelegraph. But these perks may still be unable to transform the city into a global crypto hub, even with favorable state legislation:
Most of the serious legal work has to be done at the federal level. Much of the current discussion centers on anti-money laundering, international cooperation and asset recovery, and tax law enforcement. High net worth individuals and businesses in the [crypto] space would do well to plan for government control and enforcement action in these areas, rather than hold their breath for a quick fix in Miami.
Lane Kasselman, chief commercial officer of Blockchain.com, who recently announced that he is moving his US headquarters from New York to Miami, was understandably optimistic about the company’s new sunny second home and told Cointelegraph, Miami is already the [new] Crypto Valley, and last week’s announcements prove it. Mayor Suarez is acting as a strong proponent of technology investments in the region, he added, and Miami’s welcoming regulatory environment will help fuel crypto innovation.
Miami seen from abroad
And the view from further away? Thomas Ngele, a lawyer who has been instrumental in the evolution of the Crypto Valley, told Cointelegraph, I think Miami is in a very good position to become a blockchain hub like the Crypto Valley in Switzerland and the crypto country of Liechtenstein. , while adding several caveats:
A blockchain hub is not something that can be simply imposed; it must be supported by the community, requires a number of companies active in this field and, last but not least, legal clarity.
This last element, legal clarity, is of the utmost importance, Ngele pointed out, and the perfect example is Liechtenstein with its TVTG also known as the Blockchain Act which provides the legal framework for the tokenization of assets.
Ian Simpson, senior director of marketing and communications at Bitcoin Suisse AG, a Crypto Valley-based company, told Cointelegraph: A challenge for big cities and countries is that crypto can be engulfed by the tech ecosystem at large, which can dilute the appeal of blockchain. projects. He added: Close contact and access to great ideas, talents and services are some of the things that have made Switzerland’s Crypto Valley what it is. Well, you have to wait and see how things turn out in Miami.
When asked if Bitcoin 2021 should be considered a landmark event for the crypto and blockchain space, Simpson responded that while it is a welcoming event, especially after all the lockdowns in the last year it does not appear to have marked any significant change or development in the community and as we have seen it has had absolutely no effect on the markets.
Ngele, for his part, found it a shame that most European countries were on a quarantine list and couldn’t join the 2021 Bitcoin rally, but what my friends were telling me was an amazing event, and it’s always a good start for an ecosystem. As Kasselman commented, there is no doubt that we have reached a critical inflection point where crypto has moved from niche to mainstream, he further explained to Cointelegraph:
What is remarkable is that the conference was not just about Bitcoin, but about the ecosystem: From DeFi to NFT to SushiSwap. Crypto is an industry, not just a [single] much appreciated token. A new center of gravity?
Overall, is it even possible to identify the nerve center of the crypto / blockchain worlds, and if so, could that change? That can change from time to time, Ngele said, depending on the attractive conditions for the companies involved. Europe and especially Switzerland and Liechtenstein were certainly among the first to adopt, and recently Asia is catching up. I can’t wait to welcome Miami to the club, but hey, I hope we see the world as the crypto hub.
Simpson added that the United States holds a strong position in the blockchain and crypto space due to its technological lead and the recent Coinbase IPO. However, Europe and Switzerland seem to offer more regulatory openness, and the Asian ecosystem also carries a lot of weight due to scale. But it’s still difficult to point to a single center of gravity in the blockchain ecosystem, he added.
Related: The Speakers Who Impacted Bitcoin2021 In Miami
While the United States and Europe receive a large chunk of press, Latin America and Asia have the fastest growing retail users, Kasselman added. Crypto is likely to become more ubiquitous in financial services, emerging markets accelerate commodity adoption, and mature markets increase their use of the expanding crypto ecosystem.
I think Miami could easily be America’s crypto capital if it hasn’t already, Kelman noted. However, without federal legislative support, it is impossible for Miami to become the crypto capital of the world, and recent signs point to more onerous federal legislation rather than short-term crypto-friendly laws.
Subramanian said regulation always follows innovation, and in a democracy people will end up playing. That is, the required national and federal legislation will come eventually. If Zug in Switzerland can become a crypto-blockchain heaven, so can Miami. It is more diverse, more international and much more capital friendly, he added.
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