Hong Kong-based blockchain unicorn, Animoca Brands, recently announced a strategic shift towards global markets following several lawsuits filed by the Securities and Exchange Commission (SEC) in the crypto space. The SEC has labeled Animoca’s SAND cryptocurrency as an unregistered security, while also targeting exchanges like Binance and Coinbase Global.
Yat Siu, Co-founder and Chairman of Animoca Brands, insists the company’s presence in broader markets, where the Sand token is widely accepted and available, will not be significantly impacted by the SEC’s actions. This is due to Animoca Brands’ diverse global presence, which includes progressive jurisdictions such as Hong Kong and Japan.
To counteract increasing regulatory scrutiny and a perceived “blockchain-hostile” approach in the United States, Animoca Brands is focusing on markets outside of the US. By expanding its operations and strengthening its presence in other regions, the company aims to mitigate potential setbacks resulting from the SEC’s actions.
While Coinbase remains committed to not removing cryptocurrencies featured in the SEC complaint, other exchanges are analyzing the SEC’s stance to determine their next steps. Popular US brokerage firm Robinhood is actively reviewing the SEC’s report to assess whether any action, such as delisting tokens from their platform, is necessary.
Sabastien Borget, Co-founder and COO of The Sandbox — a virtual world created on blockchain technology and a key offering of Animoca’s wide range of products — responded to the SEC’s claims, stating that their characterization of the token as a security does not affect the company’s daily business operations. He added that The Sandbox does not “necessarily agree with the SEC’s characterization.”
As part of its global diversification efforts, reports indicate that Animoca is making significant investments in the Middle East and other regions to tap into growing opportunities. In light of this news, the price of SAND is currently trading at $0.49, marking a slight 0.57% drop from the previous day.
With the future of regulation in the crypto industry uncertain, companies like Animoca Brands are taking proactive steps to mitigate potential risks. As the market evolves, these strategic decisions may prove essential for thriving in a rapidly changing landscape.
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Source: Coingape
