Galaxy Digital CEO, Mike Novogratz, is considering relocating businesses outside the United States as the country continues its regulatory crackdown on the cryptocurrency industry.
Novogratz, an American billionaire, cautioned that many other crypto firms are also adopting similar strategies and moving away from the US.
Speaking at the Piler Sandler Global Exchange & FinTech Conference last month, he revealed their intention to relocate both personnel and companies from the US.
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Several US-based crypto companies have already taken steps to establish their businesses in other countries.
While Novogratz believes that the US will remain an important player in the long run, he emphasized the need for the country to engage with the crypto industry and not disregard it.
He stated that for cryptocurrencies to fulfill their true potential, the US must be involved.
Given their significant role in the global economy, it is crucial to find common ground through engagement with politicians and regulators.
Presently, the regulatory landscape for crypto businesses in the United States appears bleak.
The US Securities and Exchange Commission (SEC) has intensified its scrutiny of crypto companies, filing successive lawsuits against major exchanges such as Binance and Coinbase.
The regulator alleges that these exchanges have violated numerous investor protection laws.
Specifically, the SEC claims that over 30 cryptocurrencies listed on these platforms are unregistered securities, including popular tokens like Solana, Cardano, Polygon, Cosmos, The Sandbox, Decentraland, and Axie Infinity.
Considering the uncertain regulatory environment in the US, several crypto companies have already announced their intentions to relocate overseas.
One such example is Coinbase, the largest US-based crypto exchange, which recently established a business presence in Bermuda.
Additionally, Coinbase expanded its services for customers in Singapore. Earlier this year, Coinbase CEO Brian Armstrong emphasized the need for clear regulations governing crypto, warning that without them, companies would seek refuge in offshore jurisdictions.
Gemini, another prominent US-based exchange, is seeking a license in the United Arab Emirates and has revealed plans to expand its workforce in Singapore to over 100 employees within the next year, targeting the Asian market.
Ripple, currently entangled in a legal dispute with the SEC since 2020, has also expressed its intention to relocate its business outside the US.
In light of the increasing exodus of crypto businesses from the US and the growing regulatory uncertainty, it is crucial for US regulators to establish clear and comprehensive guidelines for the industry.
Failure to do so may lead to the further proliferation of offshore havens for crypto companies, which could ultimately hinder the country’s ability to fully participate in and benefit from the cryptocurrency revolution.
