© Reuters
Investing.com – Cryptocurrency investment giant Galaxy Digital is ready to outsource more of its operations due to a difficult regulatory environment in the United States, CEO Mike Novogratz said on Tuesday.
The billionaire investor and believer told analysts that the collapse of leading digital asset companies, including failed exchange FTX, led to a crackdown in the United States, which led Galaxy to focus on accelerating growth overseas.
“Looking at the short term, we still have a regulatory headache in the United States,” Novogratz said on a conference call following the company’s first-quarter earnings release. “I don’t think it’s going to get better anytime soon.”
“We also have the aftereffects of the loss of trust caused by FTX and other bad actors in this area,” Novogratz added.
Novogratz believes cryptocurrencies have entered a period of short-term “stasis” in the United States because financial watchdogs such as the SEC will continue to “regulate through lawsuits.”
US regulators launched a crackdown on cryptocurrency after FTX’s implosion in November, targeting exchanges such as Binance US, Kraken and Gemini. The heightened surveillance has prompted some companies to open offices elsewhere.
Galaxy recently added a new team of traders in Hong Kong, while Coinbase (NASDAQ:) CEO Brian Armstrong told Bloomberg TV on Monday that his firm is evaluating the United Arab Emirates as a potential new crypto hub.