Crypto Companies Want to Move Out of the US: Ripple (XRP) Takes Action in Other Countries!

• Ryze Labs, a digital asset trading platform backed by payment company Ripple Labs and Standard Chartered, is focusing on growing outside the United States, according to executives of these companies.
• New York regulators ordered US crypto company Paxos Trust to stop creating more tokens for one of the most popular stablecoins, BUSD.
• San Francisco-based crypto payment company Ripple Labs reportedly hires approximately 85% of its open positions outside the United States, according to data provided by the company.

Crypto companies in the US will focus on outside the US due to the difficulties and uncertainties they experience: Ripple has started recruiting.

Crypto Companies Aim to Grow Outside the US

Crypto executives still want to grow, but the US market has now been taken off the menu. Cryptocurrency sector executives, including those involved in a high-profile lawsuit against Binance, the world’s largest crypto exchange following stringent oversight by US regulators this year, are now forced to create growth plans that effectively exclude the world’s largest economy.

Cryptocurrency venture capital firm Ryze Labs, digital asset trading platform Zodia Markets backed by payment company Ripple Labs and Standard Chartered, are focusing on growing outside the United States, according to executives of these companies. Members of the decentralized stablecoin protocol MakerDAO recently decided to block users in the US.

This change raises concerns about how much cryptocurrency companies can make money after the drastic change in the legal landscape due to the severe intervention by American regulators. Matthew Graham, co-founder and managing partner of Ryze Labs, said:

“We may ignore the US in the short term, but it’s a loss for everyone in the long run.”

For years, the cryptocurrency sector operated in a legal gray area, allowing exchanges and other firms to offer their services in almost every country. However, last year’s successive collapses of cryptocurrency companies accelerated a major regulatory process by American regulators.

The Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, the largest platform in the US. The Federal Reserve warned that issuing or holding cryptocurrencies would “likely be inconsistent with safe and sound banking practices.” New York regulators ordered US crypto company Paxos Trust to stop creating more tokens for one of the most popular stablecoins, BUSD.

While the US is tightening its regulations, regulators in other regions are becoming more open. Hong Kong officials are trying to promote the city as a hub for digital assets. Singapore has started licensing cryptocurrency companies and has published proposed rules for regulating stablecoins. Dubai established a crypto-focused regulatory agency last year, and many cryptocurrency companies have already set up operations there.

Ryze Labs carefully examines its investments focused on the United States, said managing partner Graham. The venture capital firm wants portfolio companies and potential investment companies to explain how they will limit their US operations and products or cope with compliance risks.

Ripple Initiates Hiring Outside the US

San Francisco-based crypto payment company Ripple Labs reportedly hires approximately 85% of its open positions outside the United States, according to data provided by the company. By the end of this year, the number of employees in the US will drop to half of the current workforce, which is currently about 60%.

Zodia Markets, a digital asset trading platform supported by Standard Chartered, is in talks with regulators in several US states and is considering communicating with the Federal Reserve, said co-founder and CEO Usman Ahmad. However, the company is concerned that federal authorities may invalidate states or appeal to the judicial system to enforce crypto regulations.

Usman Ahmad said, “We expect clarity from regulatory authorities. We don’t want to determine what should happen in court.” US regulators have not adopted a general ban on crypto. New York financial regulators suggested guidance this week on how crypto companies should list and delist tokens, demonstrating that there is still a space for these companies to operate – even with stricter rules.