Not a week goes by without another American fintech firm going bankrupt or being hit with a lawsuit from regulators. The largest beneficiary of this unrelenting crypto crackdown is likely to be Asia.
It has become clear in recent months that the American government does not want a thriving digital asset industry or the innovation that goes with it. Regulatory confusion over asset classification and federal agency chiefs shooting from the hip at anything related to the industry has made matters worse.
Crypto in Asia to Thrive
An exodus of prominent U.S. crypto and fintech firms has already begun, and many of them are heading to Asia.
With clearer rules, Asia stands to win the most in this war on crypto. Meanwhile, companies are forced to diversify their businesses elsewhere, reported the Straits Times on June 23.
Hong Kong is set to benefit the most ahead of Singapore, according to market players. Founder of Singaporean exchange Coinhako, Liu Yusho, told the outlet that Asia is already home to a thriving blockchain and crypto industry.
He added that Southeast Asia has 8.6% of the world’s population. However, it accounted for 14% of global crypto transactions at the end of 2022.
“As Asia embraces blockchain and digital assets, we can expect further sustained growth and innovation in this space in the region,”
Stephen Richardson, managing director at Fireblocks, added that Hong Kong would get the bulk of the movements from the U.S.
Japan is also emerging as a crypto hub in Asia. It was one of the first countries in the world to accept and regulate digital assets. It launched a framework this month enabling banks to use stablecoins.
Jason Atkins, head of business development at Auros, said that some European markets “remain aligned with the objectives of the U.S. financial system.”
Co-founder of the TOKEN2049 Web3 conference, Alex Fiskum, told the outlet:
“Asia is experiencing crypto tailwinds as major firms flee from increasing uncertain regulatory environments in the West to more favorable climates in the East.”
Growing List of Companies Leaving The US
This geographical shift in the crypto landscape is clear. It is evident in the growing number of U.S. companies eyeing Asia.
Just this week, Ripple received a major payments license to operate in Singapore. Earlier this month, the Monetary Authority of Singapore granted a license to stablecoin issuer Circle.
Coinbase and Gemini are among many other crypto companies also setting up exchanges and offices out of the United States as the exodus continues.
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