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Asia emerges at the forefront of crypto development

Markets·November 05, 2024, 6:31 AM

Asia has taken the lead, surpassing North America, in terms of being a crypto developer hub according to a recent report.

 

Electric Capital, a venture capital firm based in Silicon Valley in the United States, recently compiled a report centered upon global crypto developer data. Its analysis of the data has led to some interesting findings. 

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Photo by Shubham Dhage on Unsplash

North America loses its lead

Electric Capital General Partner Maria Shen took to the X social media platform on Oct. 30 to provide further details on some key takeaways. In the first instance, Shen points out that North America has lost its lead in terms of crypto developer share, with Asia emerging as the leading region in this respect.

 

Shen stated that “for the first time, Asia is the #1 continent for crypto talent.” Underpinning that claim, she provided data that identifies a drop in North America’s share of crypto developers from 44% in 2015 to 24% in 2024. Within the same timeframe, Asia’s share of crypto developer talent has increased from 13% to 32%.

 

Teasing the data out further, the United States still remains the number one country for crypto devs on a country-by-country basis. It leads this particular metric with 18.8% of the developer talent pool, followed by India with 11.8% and the United Kingdom with 4.2%.

 

A consequence of U.S. regulatory uncertainty

Regulatory uncertainty in the United States has been identified as a contributing factor by some crypto community commentators. The Securities and Exchange Commission (SEC) in the U.S. has engaged in regulation by enforcement rather than establishing a bespoke regulatory framework for crypto. 

 

This approach has led to SEC Commissioner Mark Uyeda calling crypto regulation in the U.S. “a disaster” earlier this month. Others, like Nic Carter, a partner at Castle Island Ventures, have gone further, describing the approach of the Biden Administration to crypto as “Operation Choke Point 2.0,” suggesting that there is an active plan being implemented to suppress the industry.

 

This negative approach has led many U.S.-headquartered crypto firms to pursue growth opportunities overseas, particularly within centers in Asia and the Middle East such as Dubai, Abu Dhabi, Hong Kong and Singapore. All of these centers have taken the opposite approach, deliberately working towards putting purpose-made regulatory frameworks in place over the course of the past two years, in order to get crypto innovation started on the right footing.

 

Shen underscored the issue from a U.S. perspective, by pointing out that 81% of crypto devs, who are actively playing their part in shaping the future of digital money, live outside the U.S. She highlighted the significance of this, stating:

 

“This is a national security issue & innovation drain for the US.”

 

In a subsequent post, she questioned whether this had come about due to a negative regulatory environment, adding that “the US needs clear crypto policy to maintain its country lead.”

 

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Policy & Regulation·

Jul 25, 2023

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