TechDogs-"The US Loses Grip On The Crypto World While Asia Tightens Its Hold!"


The US Loses Grip On The Crypto World While Asia Tightens Its Hold!

By TD NewsDesk

TD NewsDesk

Updated on Mon, Sep 25, 2023

Overall Rating
It all began when Bitcoin was born in 2009 and Silicon Valley venture capitalists fueled cryptocurrency’s growth as the industry flourished in the US before elsewhere. Now is the US, the prominent home for crypto, losing its grip?

According to a recent report, the US influence on the crypto-blockchain world is fading. In fact, the CEO of Coinbase, Brian Armstrong, thrust this debate into the spotlight this year, suggesting that if the US fails to establish clear regulations, particularly regarding exchange operations, Coinbase may have to look beyond its homeland for investment opportunities.

During a pivotal Senate Banking Committee hearing on September 12, with SEC Chairman Gary Gensler as the lone witness, committee members probed the intricacies of cryptocurrency investing. Gensler refrained from delving into the specifics of exchange regulations for handling investor assets. "I've been around finance for 44 years now, and I've never seen a field that's so rife with misconduct," Gensler concurred. "It's daunting."

"The FTX collapse showed how dangerous crypto can be. But FTX wasn't a lone bad apple. It was just the most explosive example of the problems in crypto. It seems like every day before and after the FTX collapse, there's another crypto scam hacker insider taking advantage of people and another few million dollars lost. The problems we saw at FTX are everywhere in crypto," said Committee Chairman Sherrod Brown (D-OH), shedding light on the darker side of the crypto sphere.
So, why is this happening?
  • The report says the US crypto battleground hinges on fundraising from investors, the SEC's role in safeguarding investors from coin issuers and the aspiration to reshape the cryptocurrency exchange landscape to mirror the conventional securities market.

  • Dr. Sam Seo, Representative Director of the Klaytn Foundation, an open-source blockchain company in South Korea, notes, "For crypto businesses that may require the presence of a domestic legal entity, such as companies tokenizing American real estate or Treasury bonds, relocating to countries with crypto-friendly regulations is a relatively simple and practical solution to maintain business continuity in the face of Operation Choke Point 2.0."

  • The same report highlights currently, Asian countries are vying to become leading Web 3 and blockchain hubs, with no urgent need to attract U.S.-based talent, as many of them have Asian origins. Japan often serves as a prime example of a crypto-friendly nation.

  • "They created a safety bubble for their citizens with regulations. However, Japan is a sleeping giant in terms of users and buying power," remarks Alexandru Carbunariu, CMO of blockchain gaming company Banksters. "I think when it comes to Asia, it is hard to understand what's going on overall. What's important is that Asian countries working together will surpass Europe and the US in a few years," Alexandru continues.

So, which countries are leading this charge?
  • The report highlights some US blockchain projects are gradually shifting their focus to Europe. However, Europe's MiCA regulatory framework cannot override decisions made by individual EU member nations.

  • France stands as a stricter crypto regulator than the US, while newcomers Lithuania and Estonia adopt a more lenient approach.

  • According to the same report, Asia appears poised to lead Web 3.0 innovation, bolstered by its crypto-friendly regulations, younger demographic and cultural diversity. Meanwhile, Europe, Asia and the US each adopt unique approaches to regulatory compliance, influenced by their respective governments and economic landscapes.

In this global crypto saga, the US faces competition from other regions. Europe embraces new regulations, while China introduces roadblocks and Asian counterparts such as Hong Kong emerge as a crypto hotspot. Will the SEC's persistent pursuit of cryptocurrency players, including Ripple and Coinbase, further weaken the industry's grip in the US?

Do you think recent moves in the crypto world spell doom for US-based crypto exchanges? How can the US regain its grip in the crypto world?

Let us know your thoughts below!

First published on Mon, Sep 25, 2023

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