- Apparently the big firms are just “rocking the boat”
- But it won’t work because all their threats to leave the market are a bluff
We reported earlier today, May 15, that cryptocurrency companies in the United States are thinking about moving to Bermuda.
The country has simple and straightforward regulation, and its authorities are fairly friendly to the entire industry.”
We just recently reported that Coinbase received a license in Bermuda.. Circle and Gemini are also registered here.
But one of the Winklevoss twins thinks the U.S. risks being “relegated to the dustbin of history” if it continues to press the industry.
According to the magazine, this whole situation with a potential move to Bermuda is nothing more than an attempt to pressure the Securities and Exchange Commission (SEC).</nbsp;
With that scenario with the departure of large cryptocurrency companies from the U.S. the magazine considers unlikely.
Larisa Yarova, associate professor of finance at Southampton University, is of the same opinion:
“The biggest fear of these counterparties is cryptocurrencies falling because of the outflow of investors due to regulatory pressure..
Acting swaggering and even arrogant is their usual tactic. They believe it will cause investors to become confident or even complacent and lead to irrational behavior.
For example, they will continue to hold cryptocurrency in the face of falling prices.”
CNBC cites Ripple as an example. Company threatens to move its headquarters abroad starting in 2020. But the U.S. is too big a piece of cake.
There are about 50 million cryptocurrency users here, giving up that market is shortsighted, to say the least.
“Yes, these companies can pay more attention to other jurisdictions. But give up the U.S. market entirely? No, hardly.” – Chainalysis co-founder Jonathan Levine