US Crypto Clampdown Pushes Exchanges Offshore
US cryptocurrency exchanges are establishing offshore locations in an effort to attract foreign clients and avoid being caught up in a regulatory crackdown by US authorities.
Following enforcement actions against domestic cryptocurrency companies, two of the main venues, Nasdaq-listed Coinbase and Gemini, have accelerated preparations to create marketplaces outside of the US.
After lenders like Celsius Network and FTX, the exchange managed by Sam Bankman-Fried, failed, US officials tightened their control over the market for digital assets. In addition to focusing on specific individuals, watchdogs have declared some items illegal in the US and forced businesses to stop lucrative operations.
Offshore competitors of US crypto exchanges, in contrast, have been able to introduce goods and capture market share with less concern for retaliation. Binance, which says it has no headquarters, has become the world’s largest crypto exchange with daily volumes that dwarf US rivals.
(With inputs from Shikha Singh)
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