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Despite growing regulatory concerns facing the cryptocurrency industry in the U.S., digital assets management firm Tap Global has expanded its operation into the region.
If you ever wanted the illustration of sheer optimism, here it is, and since Tap Global is not your average cryptocurrency company, who are they to refuse a good challenge?
The entity, Tap Americas, will now serve customers across 48 states by offering them exposure to digital assets, including BTC, ETH, XRP, and a stablecoin, USDC. If they manage to onboard New York, the number will grow from 48 states to 49.
Since the crash of FTX, Regulators in North America have been pursuing cryptocurrency companies vehemently, with Coinbase, Binance, and Kraken already facing court charges. This regulatory scrutiny by authorities has caused Bittrex and several other cryptocurrency companies to flee the United States. However, Tap Global is convinced that any risks it could face by moving to the U.S. will be minimized through its partnership with embedded infrastructure platform Zero Hash.
What is Zero Hash?
Zero Hash is one of a few digital asset payment platforms that has managed to be in the good books of U.S. financial regulators. Two years ago, the B2B2C embedded infrastructure company teamed up with Robinhood, Coinbase, and others to form a coalition of compliant companies that were going to abide by the Financial Action Task Force (FATF) travel rule.
According to John Taylor, a board member of Tap Global, the regulatory risk associated with expanding into the U.S. falls squarely on Zero Hash instead of the digital assets management company. In his words, his firm will mitigate all regulatory risks as long as it remains compliant and does not indulge in fraudulent, illegal, or stupid activities.
The Approach Adopts an Already Relevant Compliance Framework
One of the benefits of partnering with Zero Hash is adopting an already working regulatory framework. If Tap Global faces any regulatory scrutiny, Zero Hash will take the blows on its behalf. As such, entering the U.S. market will become more of an investment risk instead of a regulatory risk, said Taylor.
The United States’ large cryptocurrency market will provide a major upside to Tap Global. Hence, even if it’s a high-risk investment, it still becomes a high-reward operation. As per Security.org, the company could unlock a customer base of up to 93 million U.S. residents who presently own cryptocurrencies.
Arsen Torosian, the CEO of Tap Global, described the milestone as a significant one, given its potential to increase the company’s user base. He also said it is one of the first milestones that will propel Tap Global into other geographic regions on its roadmap, including Canada and Mexico.
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Executives at the company led by Arsen emphasized their regulatory-first approach, which they termed the foundation of Tap Global’s partnership with Zero Hash. Amidst major cryptocurrency companies leaving the U.S., the digital assets management company wants to demonstrate itself as a trusted company by setting camp in the region. Previously, Zero Hash has provided similar infrastructure solutions to major payment brands like MoonPay, DraftKings and Stripe.
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