Crypto Companys move offshore amidst regulatory crackdown
In the midst of an ever-changing landscape of cryptocurrencies, it seems the United States may be on the verge of becoming the first Crypto-less country in the world.
The latest blow to the industry comes as Galaxy Digital, one of the leading cryptocurrency investment firms, announces plans to shift its operations offshore due to increasing hostility from US regulators.
The firm’s CEO, Michael Novogratz, has described the regulatory environment as a “headache” and expects it to continue. This move follows a wave of regulatory crackdowns in the US, including charges against BitMEX and increased scrutiny of Binance, both of which were accused of violating AML and KYC regulations.
But it’s not just regulatory scrutiny that’s causing the Crypto industry to suffer in the US. The collapse in trust between regulators and the industry can be attributed, in part, to certain individuals in the industry, such as Do Kwon of Terraform Labs and Sam Bankman-Fried of FTX, both of whom lead companies that spectacularly crashed in 2022 and are currently in custody awaiting trial for their roles in those respective fiascos.
It’s not hard to see why the US is turning its back on Crypto. The industry has been associated with illicit activities, such as money laundering and drug trafficking. But it’s also a threat to the traditional financial system, which the US has relied on for decades. And as the world’s reserve currency, the US dollar has been the primary means of exchange in global trade, but with the rise of cryptocurrencies, that could change.
With Galaxy Digital moving its operations offshore and other firms likely to follow suit, the United States risks becoming the first Crypto-less country in the world. While some may argue that this is a good thing, others see it as a missed opportunity. The Crypto industry has the potential to revolutionize the financial system and create new opportunities for investors, but without the support of regulators and governments, it may never reach its full potential.
In the end, the United States may be left behind as other countries embrace the Crypto industry and reap the benefits that come with it. As for the US, it may become the first country in the world to turn its back on the future of finance.
