The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, prompting other cryptocurrency trading platforms to consider operating in countries other than the US.
US cryptocurrency exchange Gemini, led by Cameron and Tyler Winklevoss, is set to debut perpetual futures, a type of derivative not available to US retail customers, as it is considered a high-risk product, on the international derivatives market. The Winklevoss Brothers exchange has also been questioned for offering BTC futures contracts to its clients. Not only Gemini, but also Coinbase is developing a new trading platform outside of the US and has appealed to the Supreme Court for protection from legal disputes.
Despite numerous problems with the authorities, many US-based cryptocurrency companies are winding down their operations in the country and seeking more favourable jurisdictions. Singapore, Hong Kong, Europe and the UAE now seem much more attractive due to advantages such as transparent regulation, tax incentives and reliable government. Moreover, some countries offer attractive tax rates, making them an attractive option for cryptocurrency investors and entrepreneurs.
Increased regulatory oversight is a direct consequence of the collapse of FTX. Several significant platforms are now on the radar of leaders, and 2023 could be the year of retribution. Cryptocompanies that continue to do business in the US market will likely have to reconsider their plans - as the behaviour of regulators suggests that a truce will not be reached soon.
