- Mike cited the challenging regulatory climate in the United States as the reason.
- Hong Kong’s crypto-friendly policies are enticing Galaxy Digital to establish a foothold there.
Galaxy Digital, a leading cryptocurrency investor, is the latest significant player to leave the United States in response to the recent governmental onslaught.
CEO Mike Novogratz of Galaxy Digital made the decision to relocate the company’s operations on Tuesday, May 9. He cited the challenging regulatory climate in the United States as the reason. Bitcoin bulls and billionaire investors claim the United States has adopted an overbearing approach to regulating the cryptocurrency business in the wake of the FTX exchange’s failure.
“When I look at the short term, we still have a regulatory headache in the United States. I don’t see that breaking anytime soon. We still have a hangover, as well, from the denting of trust that FTX and other bad actors in the space created”.
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As was previously mentioned, after the impact of FTX, US officials have been aggressively going after crypto businesses. Binance U.S, Coinbase, Kraken, and many more on the top tier of the industry have all been targets.
Moreover, Hong Kong’s crypto-friendly policies are enticing Galaxy Digital to establish a foothold there and grow its trading crew. Of course, Hong Kong has lately said that there would be no ‘Light Touch’ policy. And crypto companies there will be required to adhere to the current regulations. Hong Kong is becoming more attractive to cryptocurrency startups due to the city’s transparent legal framework.
There are plenty of other crypto giants like Galaxy Digital wanting to relocate operations outside of the US. Coinbase CEO Brian Armstrong stated in an interview published on May 8. That the company is considering the United Arab Emirates as a future center for the cryptocurrency industry.