- According to an analyst from ARK Invest, the UAE could potentially overtake the US as the cryptocurrency leader.
- Several US-based crypto firms are already looking overseas.
According to ARK Invest analyst Yassine Elmandjra, the United States is at risk of losing its status as a cryptocurrency leader to countries like the United Arab Emirates, Korea, Australia and Switzerland.
In a recent remark for ARK Invest clients, Elmandjra cited the recent crypto-related pullback from trading firms Jane Street and Jump Trading as early signals of a broader response to the country’s volatile regulatory environment.
He said:
“In the US, regulatory uncertainty appears to be discouraging both existing businesses and new entrants to the crypto space.”
Elmandjra noted that the United States’ crypto liquidity has “diminished significantly”, pointing out that Bitcoin’s [BTC] trading volume in the US had fallen by 75% in the past two months. According to Coin Metrics, it fell from $20 billion a day in March to $4 billion in the past week.
UAE is going crypto-friendly
As the US becomes increasingly hostile to digital assets and crypto companies, several companies are looking overseas.
The UAE’s hopeful regulatory approach to digital assets, according to Saqr Ereiqat, co-founder of venture-building firm Crypto Oasis, makes it an “ideal” place for new and current crypto ventures. He made these comments during the Dubai FinTech Summit, which took place last month.
During a fireside talk at the Dubai FinTech Summit, Coinbase CEO Brian Armstrong shared similar concerns. According to the executive, the US may be “a little behind” in technology.
Coinbase, that is to sue the US Securities and Exchange Commission (SEC) due to its ambiguity over crypto regulation, has stated that it is now examining the UAE as a “strategic hub” for its business ventures.
During a fireside discussion at the event, Ripple [XRP] CEO Brad Garlinghouse also expressed his dissatisfaction with the restrictions in the US According to to Garlinghouse, the company is willing to spend $200 million to defend itself against the SEC.