Ethereum

Why UK Crypto Manager Tap Global is Entering the US Despite Uncertain Regulatory Environment

Cryptocurrency management company Tap Global has expanded its operations into the United States despite industry-wide concerns about regulation in the region.

Tap Americas now offers U.S. customers in the lower 48 states access to trade multiple digital assets, including Bitcoin, Ethereum, XRP, and USDC. Starting today, Tap Global begins operating in 48 states. We plan to add New York to that list shortly after our initial launch.

Since the collapse of FTX, U.S. regulators have been aggressively pursuing cryptocurrency companies, particularly Binance, Coinbase, and Kraken. As a result of this regulatory environment, many companies, such as Bittrex, have left the country and others (namely Binance) have been forced out.

However, Tap Global believes that its partnership with Chicago-based infrastructure platform Zero Hash allows it to minimize any risks that may arise from entering the US market.

Zero Hash has gone to great lengths to stay in the good graces of regulators. In 2022, U.S. B2B companies joined forces with Coinbase, Robinhood and others to launch a coalition of companies working to comply with then-new travel rules from international regulator the Financial Action Task Force (FATF). The rules were updated last year.

“The regulatory risk is theirs (Zero Hash), not ours. “We are protected because we operate under their regulations.” Tap Global Board Member John Taylor said: Decrypt. “In theory, we should have mitigated almost all of the regulatory risk unless we did something completely stupid, illegal or fraudulent, which of course we are not doing.”

Through its partnership with Zero Hash, Tap Global is adopting the Chicago-based company’s regulatory framework. And now Tap Global argues that any regulatory scrutiny should be directed to fighting Zero Hash. As a result, Taylor explained, the risk of entering the U.S. market becomes an investment risk rather than a regulatory risk.

The U.S. cryptocurrency market is huge and offers significant advantages to companies. So, according to Tap Global, this will be high risk, high reward. Ultimately, the company gained access to the estimated 93 million Americans who currently own cryptocurrency, according to Security.org.

“Entering this market is an important milestone for us,” said Tap Global CEO Arsen Torosian. decryption. “This launch will not only increase our user base but also serve as a catalyst for our planned expansion into additional regions, including Canada and Latin America.”

Tap Global executives said they pride themselves on a “regulation-first approach” that they claim Zero Hash also follows. We see this as an opportunity to establish ourselves as a ‘trusted actor’ by demonstrating this approach in the United States at a time when companies are leaving due to the regulatory environment.

According to its official website, Zero Hash has provided similar services to companies such as MoonPay, Stripe, and DraftKings.

Edited by Stacey Elliott.

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