Web3 startups surge in Asia and Europe as new legislation and crypto-AI mergers gain traction

The cryptocurrency industry is undergoing regulatory overhauls around the world with the aim of making it safer for industry participants. Countries that have implemented such frameworks have seen a surge in the number of Web3 startups, bringing businesses and opportunities to their citizens. A recent report from Blockchain Startup Accelerator Alliance states that Europe, Asia, and North America have registered a significant increase in the web3 startups on the ecosystem.

Europe has launched a comprehensive rule set called the MICA structure to control the local encryption sector. In Asia, countries like India, South Korea, and Japan are accelerating efforts to introduce laws increasing transparency in the operations of crypto companies. North American regions like El Salvador, where BTC is legal tender, are also supporting startups in their pro-crypto approach. "Overall, North America, Europe and Asia remain the big three, with each region accounting for between a quarter and a third of all startups," the Alliance said in the report.

But in the U.S. and Canada, the winds are blowing in the other direction. "The first half of 2024 saw the lowest percentage of US and Canadian startups on record, likely due to regulatory uncertainty in the US and growing real-world adoption of cryptocurrencies in emerging markets," the report noted. Startups combining artificial intelligence and cryptocurrency have become a promising category of Web3 startups and are attracting interest from potential founders. The report states that these types of startups are relevant to the NFT sector. According to the findings, 30 percent of founders initiating Web3 startups have had work experience in big tech companies. Alliance categorises ‘big tech\' firms as those that are part of the S&P500 group. The survey results also show that only about one in ten Web3 founders have already started a company, indicating that technology professionals looking to pursue entrepreneurship are interested in exploring Web3 opportunities.

Blockchain, cryptocurrency, NFTs, and the metaverse make up the set of technologies that make up the Web3 sector. The report takes a different view, claiming that 39% of all Web3 startups have two founders and less than 40% are founded by a single founder. "Among startups with two or more co-founders, roughly half share equity equally and the other half share it unequally. Nearly three-quarters of startups operate fully remotely,” the report states.