Regulatory considerations in the United States will force local crypto firms to leave the country and establish headquarters in other jurisdictions. This was stated by former Goldman Sachs executive and macro-investor Raoul Pal.
The expert drew an analogy with banks that had previously moved from New York to London in search of softer oversight.
“Britain is making decisive statements about cryptocurrencies, as is the EU. Even France […]. Like Switzerland, Singapore, the UAE and Hong Kong. This is a group of countries that formed the currency markets. There is everything there, including derivatives markets. […] The Cayman Islands are another example of how offshore financing markets work,” — the expert noted.
Pal doubted that the United States would be able to prevent companies from relocating.
“The U.S. has blown it. Britain will leave us high and dry. They see an opportunity and know the rules. London is ready to fight,” — the expert stressed.
According to him, the first movers could be Coinbase and Circle, followed by other American companies.
In March 2023 Circle in France applied for local licenses as a digital asset service provider and as an electronic money institution.
Patrick Hansen predicted the deployment by major European banks of services for handling digital assets within 48 months after the adoption of MiCA.
Also in March there was information about Coinbase examining the possibility of creating a new trading platform outside the United States. Coinbase CEO Brian Armstrong named the policy of SEC detrimental to the U.S. financial sector.
In March there were reports about Gemini plans to launch a crypto-derivatives platform aimed at the international market. The registration of the new service is expected outside the United States.
Bittrex announced wind down of operations in the United States due to regulatory uncertainty.