In an ambitious move that signals both confidence and pragmatism amidst a volatile regulatory landscape, Tap Global has opted to extend its digital asset services to the American market. This decision comes at a time when regulatory scrutiny within the sector has intensified, following high-profile collapses and legal challenges faced by other cryptocurrency firms. Despite these complexities, Tap Global launches Tap Americas, offering trading options across several cryptocurrencies, including Bitcoin, Ethereum, XRP, and USDC, to customers across 48 states, with plans to expand further.
The American regulatory environment has not been kind to crypto enterprises in recent years. The fallout from FTX’s collapse has only added fuel to the fire, with regulators doubling down on their efforts to reign in the industry. Notable platforms such as Binance, Coinbase, and Kraken have found themselves in the crosshairs of enforcement actions, while others, like Bittrex, have exited the U.S. market entirely.
Yet, despite these obstacles, Tap Global sees a viable pathway forward through its strategic alliance with Zero Hash, a Chicago-based infrastructure provider well-versed in navigating the regulatory hurdles of the U.S. market. This partnership effectively allows Tap Global to leverage Zero Hash’s regulatory compliance framework, shifting the onus of regulatory risk to the latter. This shrewd move indicates Tap Global’s commitment to a “regulation first” approach, prioritizing legal compliance as a cornerstone of its expansion strategy.
Zero Hash has been proactive in adapting to regulatory expectations, notably taking part in initiatives aimed at compliance with the Financial Action Task Force’s updated travel rule along with other industry stakeholders. This collaborative spirit towards regulatory compliance suggests a potential easing of the confrontation between crypto businesses and American regulators, offering a blueprint for others in the industry.
The foray into the U.S. market by Tap Global underlines the company’s ambition and its belief in the potential rewards of accessing a vast pool of American cryptocurrency users. With an estimated 93 million Americans owning cryptocurrency, the strategic importance of this expansion cannot be overstated. Moreover, it marks a crucial step in Tap Global’s broader plans for international growth, viewing the U.S. market as a springboard into other regions such as Canada and Latin America.
Such a prudent yet bold approach, underpinned by a strong emphasis on regulatory compliance, could not only help Tap Global carve out a significant presence in the U.S. but also set a new standard for how crypto businesses engage with regulatory frameworks globally. This strives to position Tap Global not only as a market participant but as a trusted entity in a landscape that has been, at times, skeptical of the burgeoning crypto sector.