US regulators expanding their crypto investigations has led some companies to look to financial hubs overseas, including Singapore, Hong Kong, Europe, and Dubai
Bloomberg
Context & Ripple Effects
This story lands mid-arc of a two-year relocation wave: after state-level probes like the multi-state inquiry into Genesis Global signaled that scrutiny would reach across interconnected crypto firms, some operators concluded the safest response was jurisdictional rather than defensive. The withdrawal of major US banks from crypto clients during the crackdown removed the domestic banking layer these firms needed, making overseas hubs with licensing regimes the practical alternative.
First-order effects
Crypto companies facing expanded US investigations redirect incorporation, licensing, and banking relationships toward Singapore, Hong Kong, Europe, and Dubai, where regulators offer clearer entry paths than the enforcement-led approach at home.
Second-order effects
Hub governments begin competing for the displaced business on license volume and speed — Singapore's 13 crypto licenses issued in 2024 show it outpacing a more cautious Hong Kong in exactly this contest.
Third-order effects
If US political conditions improve, as the brightening backdrop for crypto in America suggests, the offshore hubs' growth case weakens — leaving their licensing regimes sized for demand that may flow back onshore, and fragmenting global crypto liquidity between jurisdictions in the process.
The trend: Crypto regulation is splitting into competing national licensing regimes, with company location decisions swinging between offshore hubs and the US based on which side offers friendlier rules.
At a time when Russia 🇷🇺 is cut off from SWIFT and countries are discussing global trade not being denominated in USD, the SEC is doing everything it can to assure that that reality happens soon, while also making sure the U.S. is NOT a leader in the digital asset revolution. htt…
The US “crypto crackdown” will force the brightest and most innovative Americans overseas There was a time when folks would come to America to escape oppression and thrive in their profession How times have changed https://twitter.com/...
This chart is very cool and shows share of VC funding in crypto by region. Interesting to see US's dominance was lower in 2017-18. Seems like it was because of ICO crackdown? Of course it came back https://www.bloomberg.com/... https://twitter.com/...
The US crypto crackdown is prompting battered digital-asset firms to look toward financial hubs overseas—like Singapore, UK and even EU!!— clouding the country's position as an industry leader V. good weekend read by @emilyjnicolle and @Suvajourno https://www.bloomberg.com/...
Good, crypto firms should go abandon US markets and move offshore. Apart from extremely corrupt jurisdictioms, the same story will play out there and they'll get banned as well. https://www.bloomberg.com/...
US authorities' recent “regulation by enforcement” approach is prompting crypto companies to seek out a warmer reception overseas, where new digital-asset rules, tax incentives and political charm offensives are winning them over friday read on @crypto 🌴https://www.bloomberg.com/…