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US Crypto Companies Obliged To Relocate OverseasBy Laurie Dunn
The United States' cryptocurrency companies are resorting more and more to the tactic of transporting their operations overseas, seeking out places with a friendlier regulatory stance towards cryptocurrency companies in general.
This phenomenon has been on the rise due to increasing pressure and criticism from sources such as the SEC, whose chairman Gary Gensler appears to have made it his mission to eradicate crypto from US shores.
In light of this, many crypto companies have begun scrutinising nations that have easier regulations when it comes to crypto trading, leading to a surge in relocation campaigns over recent years.
Major exchanges such as Binance, Kraken and Bitfinex have already shifted their locations over to countries with more lenient regulatory policies. Binance, the largest crypto exchange in the world by trading volume, has offices and staff located in many countries, probably in order to be able to survive full-on government attacks.
Coinbase’s regulatory and legal duel with the SEC are well documented. CEO Brian Armstrong has recently had talks in the UK over a possible move, and UAE is also being considered as a strategic hub.
Another crypto company currently fighting a highly public battle with the SEC is Ripple. The company has 20% of its customers based in the MENA region, and according to CEO Brad Garlinghouse, Dubai is emerging as a key financial hub.
“Ripple is expanding in Dubai. With 20 percent of our customers based in MENA and clear regulatory regimes being developed, it’s no surprise that Dubai is emerging as a key global financial hub,”
The trend of US crypto companies relocating overseas continues even though some say that it raises possible concerns about potential risks for traders and investors alike.
Regardless, US-based crypto firms continue their search for friendlier jurisdictions beyond America's shores - which could result in more competition among selected nations eager to host new digital technology companies with their attendant benefits.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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