The recent U.S. government crackdown on cryptocurrency companies has prompted many American firms, particularly the exchanges where customers buy and sell digital tokens, to look at building their businesses abroad. This comes after years of these companies trying to influence federal regulation in the United States, as Congress, regulators, and the public have become increasingly hostile towards crypto. The enforcement actions have caused a shift in the industry, prompting some to seek new markets overseas or even leave the country entirely. Coinbase, for example, the largest crypto exchange in the United States, has opened a business in Bermuda, while Gemini, a rival firm based in New York, is pursuing a license in the United Arab Emirates, and Bittrex, an exchange in Seattle, has shut down its U.S. operations. Meanwhile, tensions between the industry and U.S. regulators have been growing since early 2021, when Gary Gensler, a crypto critic, was appointed chair of the Securities and Exchange Commission (SEC). This led to a new round of hostilities, including the recent lawsuit against Coinbase for marketing securities without proper registration. Despite this, some crypto companies are still expanding internationally and plan to fight for more favorable rules in Washington. While leaving the United States is not a strategy for every American crypto firm, founders with smaller companies are considering moving jurisdictions, and there is growing talk of countries positioning themselves as crypto hubs.
