The European Union’s comprehensive cryptocurrency bill, MiCA, was approved in April. One of the issues MiCA addressed was the high energy consumption of PoW Blockchains like Bitcoin. At this point, an altcoin project that stands out with its energy efficient mechanism is now seeing increased VC investment.
This altcoin sees itself as one of the biggest MiCA beneficiaries
Focusing on supply chain solutions, Layer-1 Blockchain Vechain (VET) appreciated the European Union’s regulatory clarity on cryptocurrencies in its new tweets. The blockchain company sees itself as one of the biggest beneficiaries of the enhanced clarity of established crypto rules.
In the official announcement, “Our position as a leading Blockchain platform based on Europe’s regulatory environment allows Vechain to benefit greatly from crypto laws. We are proud and excited to play a critical role in building the economy of tomorrow.” statements were included.
Our position as a leading #blockchain platform based in Europe's regulatory environment ensures #vechain will greatly benefit from the enhanced clarity of established #crypto rules.
We're proud and excited to be playing a critical role in building tomorrow's economy.… https://t.co/WMGvC9s6pc
— vechain (@vechainofficial) May 17, 2023
VeChain says the EU’s position is solidified with the new MiCA law. The new users aim to protect investors by mandating crypto companies to be authorized by the European Union. As Kriptokoin.com, we have included the details in this article.
The MiCA bill was approved by the EU member states and parliament on Tuesday, May 16, 2023. The impact of the new law has led VC investors to European projects. VC investment in European projects increased from 5.9% in the first quarter of 2023 to 47.6% in the second quarter.
VeChain sees new EU cryptocurrency law as landmark
The altcoin project sees MiCA as an important milestone in the development of the Blockchain industry. Knowing that investors will be protected by the law will increase the level of trust and encourage more investment in the system.
According to reports, VeChain hopes to secure a significant portion of its VC investments, considering its status as one of the top Blockchain companies in the European region. The report predicted that investors, VC inflows into the network would increase. He also claimed that VeChain will become more secure in holding its native token VET.
On-chain data shows that the level of development activity reached its highest level in four weeks. However, investor sentiment did not follow the same pattern. VET’s on-chain volume has not yet priced in the latest positive news in the VeChain ecosystem.
What do VC investors mean for VeChain?
If the network attracts strong VC entries, investors will likely gain more confidence in holding VET. Such investments will likely encourage further network development. The aforementioned VeChain has experienced a strong rebound in development activity over the past three weeks after the previous slowdown.
VeChain’s development activity soared to its highest level in four weeks. Despite this, investor confidence still remained low. The same can be said of the on-chain volume of VET, which is still struggling to recover from its lowest monthly levels.
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