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- Mike pointed to the difficult regulatory environment in the United States as the cause.
- Hong Kong’s favorable policies towards cryptocurrency are attracting Galaxy Digital to set up operations there.
Galaxy Digital, a prominent cryptocurrency investor, is the latest major entity to exit the United States in light of the recent governmental crackdown.
On Tuesday, May 9, CEO Mike Novogratz announced the decision to move the company’s operations. He pointed to the difficult regulatory environment in the United States as the cause. Bitcoin advocates and wealthy investors assert that the U.S. has taken an excessively stringent stance on regulating the cryptocurrency sector following the collapse of the FTX exchange.
Novogratz remarked:
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“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 previously noted, following the fallout from FTX, U.S. authorities have been actively pursuing crypto firms. Binance U.S., Coinbase, Kraken, and several other leading companies in the sector have all been under scrutiny.
Additionally, Hong Kong’s favorable policies towards cryptocurrency are drawing Galaxy Digital to establish a presence there and expand its trading team. However, Hong Kong has recently indicated that there will be no ‘Light Touch’ policy, and crypto firms will need to comply with existing regulations. The city’s transparent legal framework is making it increasingly appealing to cryptocurrency startups.
Numerous other crypto giants, similar to Galaxy Digital, are also looking to move their operations outside of the U.S. Coinbase CEO Brian Armstrong mentioned in an interview published on May 8 that the company is contemplating the United Arab Emirates as a potential hub for the cryptocurrency industry.
