Regulation
Why Tap Global, the UK cryptocurrency manager, is entering the US, despite an uncertain regulatory environment
Cryptocurrency management firm Tap Global has expanded its operations into the United States despite industry concerns about regulation in the region.
Tap Americas will now provide US customers in 48 states with access to trade multiple digital assets, including Bitcoin, Ethereum, XRP and USDC. Starting today, Tap Global will begin operating in 48 states. It’s looking to add New York to that list soon after the initial launch.
After the collapse of FTX, American regulators pursued aggressively crypto companies-above all Binance, CoinBaseAND Kraken. As a result of this regulatory environment many companies, such as Bittrex-Have he left the country while others (i.e Binance) were forced to leave.
But Tap Global believes that any risks that may arise by entering the US market are minimized thanks to the partnership with Zero Hash, a Chicago-based infrastructure platform.
Zero Hash has done everything to stay in the good graces of regulators. In 2022, the US B2B company joins Coinbase, Robinhood and others to launch a coalition of companies has pledged to remain compliant with new travel rules issued by the international regulator Financial Action Task Force (FATF). The rule was updated last year.
“The regulatory risk is theirs [Zero Hash], rather than ours. We operate under their regulatory coverage and are therefore covered. Tap Global board member John Taylor said this Decipher. “In theory, we should have mitigated almost all of the regulatory risk, as long as we didn’t do anything completely stupid, illegal or fraudulent, which, of course, is not our job to do.”
By partnering with Zero Hash, Tap Global is adopting the Chicago-based company’s regulatory framework. And now, Tap Global argues, any regulatory scrutiny is Zero Hash’s job to fight. In turn, the risk of entering the U.S. market becomes an investment risk rather than a regulatory risk, Taylor explained.
The US cryptocurrency market is huge and offers a significant advantage for the company. So it’s going to be high risk, high reward, second Tap Global. After all, the company is getting access to the estimate 93 million Americans who currently own cryptocurrency, according to Security.org.
“Entering this market represents a significant milestone for us,” said Arsen Torosian, CEO of Tap Global Decipher. “The launch will not only increase our user base, but will also serve as a catalyst for the further geographic expansion we have planned, for example into Canada and Latin America.”
Tap Global executives said they pride themselves on their “regulation-driven approach,” something they say Zero Hash also follows. It sees an opportunity to establish itself as a “trusted player” by demonstrating this approach in the US in the wake of corporate abandonment due to the regulatory environment.
Zero Hash has provided similar services to companies like MoonPay, Stripe and DraftKings, according to him Official site.
By Stacy Elliott.