Faced with the intransigence of the SEC and the general unfavorable atmosphere prevailing in the United States, many companies in the crypto sector have considered relocating their activities to more welcoming countries. Several of them have even taken the plunge by applying for licenses abroad. This dynamic could suggest that the United States is on the verge of losing its position as the nerve center of crypto activity. However, Migranka Pattnaik, CEO of analytics firm Merkle Science, disputes that view. According to him, despite the current obstacles, the United States will remain at the heart of global crypto activity for some time to come.
A country still favorable to the activities of crypto companies according to Mriganka Pattnaik
Last May, some analysts were already pointing out that the United States was in danger of losing its competitive advantage with the exodus of many crypto companies. This is due to the lack of a clear legal framework for cryptos and recent regulatory crackdowns in the country. However, the co-founder and CEO of Merkle Science doesn’t see it that way.
In effect, Mriganka Pattnaik said that despite recent events, the United States cannot lose its leadership anytime soon. “My opinion is a little contrarian here, but I think in five years the majority of the activity will still be in the United States,” he said.
He highlights the high level of innovation in the United States which gives it a huge advantage over countries like China, India and the United Arab Emirates, which nevertheless have “strong consumer markets”. Migranka Pattnaik also points to the “general market dynamics” of the American economy, in particular the clarity of taxation, which always militates in favor of the United States.
Many opinions contrary to the analysis of Mriganka Pattnaik
Unlike Mriganka Pattnaik, some experts believe that the country of Uncle Sam is no longer favorable to the activities of crypto firms. Alex Chehade, Managing Director of Binance Dubai recently said, “You don’t want to sit where the goalposts are moving. For the success of your business, you need predictability, you need to plan and you need to budget”.
Ripple CEO Brad Garlinghouse also agrees. Last March, the expert claimed that the crypto industry had “started to emerge” from the United States. As of March 20, 2023, more than 80 companies have already applied for licenses for their services in Hong Kong. The crypto exchange Gemini also announced last June its intention to apply for a license for its services in the United Arab Emirates.
Recently, the crypto firm Strike left the United States to take up residence in El Salvador. Even if it retains its supremacy according to Mriganka Pattnaik, the country of Uncle Sam is visibly losing ground over the days.
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2023-07-04 17:05:55
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