Tap Global, a cryptocurrency management company, embarks on an ambitious expansion by tapping into the US market through its new American entity, Tap Americas. The firm is now offering crypto trading services to customers in 48 states with the exception of New York, which it plans to include soon.
The backdrop of this strategic move is the rigorous regulatory environment fostered post-FTX collapse, prompting American regulators to intensify scrutiny over crypto operations. High-profile companies such as Binance, Coinbase, and Kraken have faced the brunt, leading to market exits by some like Bittrex and the eviction of Binance.
Despite these challenges, Tap Global is confident in its approach, leveraging a partnership with Zero Hash, a Chicago-based infrastructure platform renowned for its regulatory compliance efforts. By aligning with Zero Hash, Tap Global effectively minimizes regulatory risk, as Zero Hash navigates the regulatory landscape.
The potential rewards of entering the US market are viewed as substantial by Tap Global. Accounting for the impressive number of American crypto owners, the company sees a high risk, high reward situation unfolding. In the eyes of Tap Global executives, this move is not just an expansion but a trailblazing step towards greater international growth, earmarking regions like Canada and Latin America for future development.
Tap Global and Zero Hash’s shared commitment to prioritize regulatory compliance positions them as “trusted actors” in the American market, especially as they offer their services amidst an environment of increased regulation that has witnessed other companies retreat.
This foray into the US market signifies a major growth phase for Tap Global, one that will potentially enlarge its user base and solidify its international presence.
Important Questions and Answers:
1. Why is New York an exception to Tap Global’s US market entry?
New York State has its own set of stringent regulatory requirements, including the need for a BitLicense for companies dealing with cryptocurrencies. This can be a time-consuming and complex process, which might explain why Tap Global has yet to launch services in New York.
2. What role does Zero Hash play in Tap Global’s US strategy?
Zero Hash provides a regulatory-compliant infrastructure for digital asset trading. This partnership allows Tap Global to manage the complexity of the U.S. regulatory climate more effectively, enabling the company to focus on its core service offerings while relying on Zero Hash’s compliance expertise.
3. How significant is the American market for cryptocurrency companies?
The American market is one of the largest for cryptocurrency trading and adoption. The United States has a high population of crypto users, and tapping into this market can offer a company exposure to a substantial number with increased business opportunities.
Key Challenges and Controversies:
Challenge: Navigating complex and evolving U.S. regulations, particularly in an era post-FTX collapse, where scrutiny from regulators has intensified.
Controversy: Some large crypto players have faced regulatory pushback in the U.S., which raises questions about fair competition and the clarity of regulatory requirements within the cryptocurrency industry.
Advantages and Disadvantages of Tap Global’s Expansion:
Advantages:
– Access to one of the world’s largest markets for cryptocurrency, which can lead to increased revenue and user base growth.
– Partnering with a compliant infrastructure platform like Zero Hash can instill confidence among consumers who are increasingly looking for trustworthy platforms.
Disadvantages:
– Increased regulatory scrutiny in the U.S. could pose challenges to operations if regulations become even tighter.
– The cost of compliance with U.S. regulations can be significant and may require substantial resources.
Based on the provided information, here’s a link to Tap Global’s main website for our readers to explore:
And for those who are interested in the infrastructure platform Tap Global is partnering with:
Please note that both URLs are based on the mentioned entities and intended to be accurate as per the existing domain names for Tap Global and Zero Hash. However, considering URLs can change or may vary based on the company’s decisions, it’s always recommended to verify their current status.
