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Why UK Crypto Manager Tap Global is entering the US – despite an uncertain regulatory environment
Crypto management firm Tap Global has expanded its operations to the United States despite industry-wide concerns about regulation in the region.
Tap Americas will now provide US customers in 48 states with access to trade various digital assets, including Bitcoin, Ethereum, XRP and USDC. Starting today, Tap Global will begin operating in 48 states. The intention is to add New York to this list shortly after the initial launch.
After FTX’s collapse, American regulators aggressively pursued crypto companies-most notably Binance, Coin baseIt is Kraken. As a result of this regulatory environment, many companies – such as Bittrex-to have Left the country while others (namely Binance) were forced to leave.
But Tap Global believes that any risk that may arise when entering the US market is 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 US B2B company joined Coinbase, Robinhood and others to launch a coalition of companies committed to remaining compliant with a new travel rule from the international regulator Financial Action Task Force (FATF). The rule was updated last year.
“The regulatory risk is theirs [Zero Hash], instead of ours. We are operating under their regulatory umbrella and therefore we are covered.” Tap Global board member John Taylor said Decrypt. “In theory, we should have mitigated almost all of this regulatory risk, as long as 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 scrutiny is for Zero Hash to fight against. In turn, the risk of entering the U.S. market becomes an investment risk rather than a regulatory one, Taylor explained.
The US crypto market is huge, offering a significant advantage to the company. So it will be high risk and high reward, according to Tap Global. After all, the company is having access to the estimated value 93 million Americans who currently hold cryptocurrency, according to Security.org.
“Entering this market is a significant milestone for us,” said Tap Global CEO Arsen Torosian. Decrypt. “The launch will not only increase our user base, but will also act as a catalyst for the geographic expansion we have planned, for example in Canada and Latin America.”
Tap Global executives said they pride themselves on their “regulation-first approach,” something they say Zero Hash also follows. It sees an opportunity to establish itself as a “trusted actor” by demonstrating this approach in the US, following companies exiting due to the regulatory environment.
Zero Hash has provided similar services to companies like MoonPay, Stripe and DraftKings, according to its official website.
Edited by Stacy Elliott.