The European Union Parliamentary Elections next week could provide insights into future crypto regulations in the region, according to Bitfinex Head of Derivatives Jag Kooner.

Kooner mentioned to The Block that a right-wing shift might lead to stricter crypto regulations, while a pro-crypto outcome could expedite supportive measures like MiCA.

Investors will closely monitor the EU elections for regulatory signals that could significantly influence the broader crypto market in the coming months, Kooner said.

Impact on MiCA Framework Implementation

Kooner emphasized that the upcoming EU elections are vital for shaping legislation, especially regarding the Markets in Crypto Assets (MiCA) framework. The election outcome could either result in stricter controls or more supportive policies, depending on the composition of the new parliament.

"The upcoming elections are crucial for the implementation of the MiCA regulation. MiCA aims to create a unified regulatory framework for cryptocurrencies across the EU, providing legal clarity and potentially attracting more investment. The outcome of the elections will determine the pace and enthusiasm with which these regulations are implemented," Kooner added.

The 2024 European Parliament election is scheduled for June 6 to June 9. This will be the tenth parliamentary election since 1979 and the first since Brexit, coinciding with several other elections in various EU member states.

European ETPs Suffer Monthly Outflows

An indicator of crypto asset interest within the EU is the flow dynamics of bitcoin exchange-traded products (ETPs). According to the Financial Times, Morningstar data shows that European bitcoin ETPs have experienced outflows every month this year.

The FT reported that European bitcoin ETPs have seen outflows totaling $506 million since the start of the year, despite bitcoin's price rising by approximately 40% during this period, driven by inflows into U.S.-based spot bitcoin ETFs.

By the end of April, European bitcoin ETPs managed around $6.4 billion in assets, while U.S. funds held $53.5 billion, according to the report.