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Does the fact that American regulators are targeting cryptocurrency firms suggest that other nations have a possibility of developing become crypto hub?
With its stringent regulations, the United States Securities and Exchange Commission (SEC) goes against Web3 businesses. Recently, it imposed a $30 million punishment on Kraken and ruled that its staking reward facilities must be shut down.
The SEC then issued a warning to Paxos on potential legal action for breaking securities law. Regulators are also against launching Bitcoin spot ETFs (ETFs.) The SEC’s case against Ripple Labs is what is most significant, though.
Other nations continue to take a more tolerant approach toward crypto firms while the U.S. has taken a more restrictive position. Paul Chan, Hong Kong’s Financial Secretary, declared in January that the city is striving to establish itself as a centre for the cryptocurrency industry. Following the announcement, the Huobi exchange and DBS bank, both located in Singapore, disclosed their ambitions to increase their commercial operations there.
The UK is making steady progress toward comprehensive cryptocurrency legislation. The second stage of the process toward regulation has begun, and the government is now looking for input from key players in the market. British Prime Minister Rishi Sunak wants to turn his nation into a center for the cryptocurrency industry.
Dubai published rules this month to provide Web3 companies unique frameworks. The nation, which is already a popular location for conferences and events linked to cryptocurrencies, wants to establish itself as a global centre for cryptocurrencies.
In Asia, South Korea is making the most of blockchain technology. Busan, one of the cities in South Korea that is aging the quickest, wants to embrace cryptocurrency to draw in more young people. The city and Binance have also agreed to launch a public cryptocurrency exchange. Public metaverses are also being constructed in Seoul and Seongnam, South Korea. The Asian nation has permitted the issuing of security tokens for corporate ownership.
Bitcoin is now accepted as currency in El Salvador and the CAR. El Salvador has pledged to embrace bitcoin widely and plans to teach 250,000 schoolchildren about it by 2023. A dedicated Bitcoin Office has also been established by the government to oversee all initiatives using cryptocurrencies.
Businesses are gradually leaving the U.S. as a result of the country’s rejection of broader crypto usage and other nations’ support for it. Sheila Warren, the Chief Executive Officer (CEO) of the Crypto Council for Innovation, said in a statement to Bloomberg that the United States “has left both regulators and companies grappling with what is essentially a guessing game as to what might come next by favoring enforcement instead of passing rules in line with other regions.”
According to Zhuling Chen, CEO of RockX, “Several US cryptocurrency investors are starting to get a little uneasy given the increased amount of governmental scrutiny and enforcement we have observed. Anyone interested in continuing to use cryptocurrency will select friendlier nations with clearer regulations.
The Chief Investment Officer of Arca, Jeff Dorman, also claims that new Web3 businesses “not even bother with the U.S.”
