Regulation
Why UK cryptocurrency manager Tap Global is entering the US, despite an uncertain regulatory environment
Cryptocurrency management company Tap Global has expanded its operations in the United States despite industry concerns over regulation in the region.
Tap Americas will now offer US customers in 48 states access to trade multiple digital assets, including Bitcoin, Ethereum, XRP and USDC. Starting today, Tap Global will begin operating in 48 states. He plans to add New York to that list soon after the initial launch.
Following the collapse of FTX, US regulators actively pursued crypto companies-notably Binance, CoinbaseAnd Kraken. Due to this regulatory environment, many companies, such as Bittrex-to have Left the country while others (viz. Binance) were expelled.
But Tap Global believes that any risks that may arise from entering the US market are minimized through its partnership with Zero Hash, a Chicago-based infrastructure platform.
Zero Hash has gone to great lengths to stay in the good graces of regulators. In 2022, the American B2B company partnered with Coinbase, Robinhood and others to launch a coalition of businesses has pledged to remain compliant with a new travel rule from international regulator the Financial Action Task Force (FATF). The rule was updated last year.
“The regulatory risk belongs to them [Zero Hash], rather than ours. We operate under their regulatory coverage, and therefore we are covered. Tap Global Board Member John Taylor said Decrypt. “In theory, we should have mitigated almost all of that regulatory risk, provided we didn’t do anything completely stupid, illegal or fraudulent, which, of course, we’re not in the business of doing.”
By partnering with Zero Hash, Tap Global is adopting the Chicago-based company’s regulatory framework. And now, says Tap Global, any regulatory review must be conducted by Zero Hash. In turn, the risk of entering the U.S. market becomes an investment risk rather than a regulatory risk, Taylor explained.
The US crypto market is huge and offers significant upside potential for the company. So it will be high risk, high reward, depending on Tap Global. After all, the company has access to the estimates 93 million Americans who currently owns cryptocurrency, according to Security.org.
“Entering this market is an important milestone for us,” said Arsen Torosian, CEO of Tap Global. Decrypt. “The launch will not only increase our user base, but also act as a catalyst for further geographic expansion that we have planned, for example in Canada and Latin America.”
Tap Global executives said they pride themselves on their “regulatory first approach,” which Zero Hash also claims to follow. It sees an opportunity to establish itself as a “trusted player” by adopting this approach in the United States, following companies leaving due to the regulatory environment.
Zero Hash has provided similar services to companies like MoonPay, Stripe and DraftKings, according to its official site.
Edited by Stacy Elliott.