Regulatory uncertainty in the US is prompting digital asset platform Bakkt to expand internationally to Hong Kong, the UK and the European Union, CEO Gavin Michael has noted.
“We are particularly focused on Hong Kong, the UK and parts of the EU because we see partners wanting to move into those spaces and we want to be able to support them,” Michael said during the Piper Sandler Global Exchange & FinTech Conference held. in New York last month.
The decision comes months after Bakkt acquired an integrated crypto trading company Apex Crypto of Apex Fintech Solutions.
According to Michael, Bakkt hopes to use Apex to achieve its global goals, through the latter’s existing partner companies: Webull, M1, Public.com and Stash.
Michael claims that partner companies expand globally to provide US stock trading and Bakkt can add cryptocurrency trading alongside them, with a low barrier to entry.
US Crypto Regulatory Uncertainty Creates Exodus of Crypto Firms
A recent Bank of America research report revealed that regulatory uncertainty in the crypto market is “overshadowing the rapid development and integration of blockchain.”
“Digital asset sentiment remains poor as US Securities and Exchange Commission (SEC) enforcement actions create regulatory uncertainty, putting pressure on token prices,” wrote Alkesh Shah and Andrew Moss, bank analysts.
The US regulator filed separate charges against Binance.US and Coinbase for a series of alleged unregistered security offerings.
On the other hand, according to industry experts, the The Hong Kong market is tempting cryptocurrencies business away from the United States, given Hong Kong’s efforts to foster the Web3 ecosystem.
The Bakkt CEO noted that this uncertainty has hampered the company’s ability to collaborate with US-based companies. On top of that, Bakkt recently removed three of the largest cryptocurrencies by market capitalization: Solana (SOL), Polygon (MATIC) and Cardano (ADA). In May, Bakkt removed 25 tokens due to regulatory concerns.
