In the frenzied sphere of the crypto-economy, companies such as Bakkt are veering international where regulatory landscapes seem to promise a tailor-made suit for the industry’s shape-shifting needs. Gavin Michael, Bakkt CEO, speaks about the company’s particular interest in Hong Kong, the United Kingdom and parts of the European Union – an interest colored by the desires of Bakkt’s partners to venture into these territories. The expansion perspectives surfaced following Bakkt’s acquisition of the crypto trading entity, Apex Crypto.
Bakkt aims to piggyback on Apex’s existing partners – such firms as Webull, M1, Public.com, and Stash – to cultivate global ambitions. The strategy revolves around mutually beneficial growth, as these partners spearhead international expansion in US stock trading, and Bakkt can tandemly introduce crypto trading with a low entry barrier.
However, the industry’s complexion is not all bright and chirpy. A recent study by Bank of America paints shades of grey, indicating that the crypto market’s optimism is dampened by regulatory overshadowing. As the U.S. Securities and Exchange Commission (SEC) sharpens its claws, token prices are under pressure, symptomatic of sentiments souring due to creeping regulatory anxieties.
Unswervingly, the SEC has trained its regulatory crosshairs on industry giants likeBinance.US and Coinbase, charging them for a series of purported unregistered securities offerings. This creates tremors, beckoning an exodus away from America. Stars of hope are glimmering in alternative markets like Hong Kong for these migrating crypto entities since the special administrative region appears keen to nurture the sprouting Web3 ecosystem.
Limited by the veil of regulatory indecision, Bakkt’s opportunities to form alliances with US-based companies are reportedly stymied, says Gavin Michael. In an attempt to navigate the unsettled waters of regulation, Bakkt has recently downplayed its portfolio by delisting three hefty cryptocurrencies – Solana (SOL), Polygon (MATIC) and Cardano (ADA). Earlier in May, the firm took a step back on 25 tokens due to similar regulatory fog. While the international allure draws crypto firms to fresher pastures, the inherent paradoxical nature of the tech-advanced, fluctuating asset and its place in traditional legal frames form the underlying archetypal discord the crypto industry faces. Clean regulatory air is required, yet in the interpretation, jurisdictions could make or break a crypto enterprise.
Source: Cryptonews
