In a recent interview, Animoca Brands CEO, Yat Siu observed how North American crypto entrepreneurs confront heavier predicaments in comparison with their counterparts in other geographic locations due to existing macroeconomic and regulatory conditions. Although often painted in a negative light, Siu argues that the regulatory landscape surrounding cryptocurrencies isn’t as grim as it may seem.
While keeping an optimistic outlook for the future, Siu contends that cryptocurrency prices’ downturn and high global interest rates have set the bar considerably higher for newcomers. Despite these hurdles, the traction of the crypto world has not faltered. On the contrary, the number of smart contracts being deployed, and people entering the industry continues to soar – a sentiment echoed in the nearly 60 new investments added to Animoca Brands’ portfolio in recent months.
Indeed, the impact on crypto company investments is considerable. The PitchBook Crypto Report’s debut quarter for 2023 revealed these businesses only raised $2.6 billion over 353 investment rounds. Compared to the previous quarter, deal values dipped by 11%, with total deal worth decreasing by 12.2%.
Siu’s observations reflect significant developments that are reshaping the crypto space in North America. The US Securities and Exchange Commission, for instance, has instigated a strict crackdown on crypto exchanges to establish industry control. This has resulted in classifying over 160 cryptocurrencies as securities and filing lawsuits against major crypto exchanges, such as Binance and Coinbase.
Contrarily, Asian regulators, particularly in Hong Kong, have treated regulation more amicably by implementing licensing systems for crypto firms to better manage associated market risks. Meanwhile, in the United Kingdom, crypto business regulation has been introduced and enforced through newly approved legislation.
Highlighting the disparity between the North American and Asian regulators’ approaches alongside the fluctuations in crypto venture capital, Siu illustrated that perspective matters: “If you are thinking from a North American perspective, it might sound bad. When you go to the Middle East, Asia, actually it’s very vibrant.” It’s a valuable insight into the global terrain of crypto-regulation, unearthing the relativity of optimism and pessimism in the sector.
Source: Cryptonews
