- Allegedly large firms are just “rocking the boat”
- But that won’t work because all their threats to exit the market are bluffs.
Earlier today, on May 15, we reported that crypto companies in the US are considering moving to Bermuda. The country is distinguished by simple and understandable regulation, and its authorities are quite friendly towards the entire industry.
Just recently we reported that Coinbase was licensed in Bermuda. Circle and Gemini are also registered here. At the same time, one of the Winklevoss twins believes that the States risk remaining “in the dustbin of history” if they continue to put pressure on the industry.
But CNBC analysts think otherwise. According to the publication, this whole situation with a potential move to Bermuda is nothing more than an attempt to put pressure on the Securities and Exchange Commission (SEC).
At the same time, the magazine considers the scenario with the departure of large crypto companies from the United States unlikely. Of the same opinion adheres to Associate Professor of Finance at the University of Southampton Larisa Yarovaya:
“The biggest fear of these counterparties is the fall in the price of cryptocurrencies due to the outflow of investors due to regulatory pressure. Acting swaggering and even arrogant is their usual tactic. They believe that this will give investors confidence or even self-confidence 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. The company is threatening to move its headquarters overseas from 2020. But the States are too tidbit. There are about 50 million cryptocurrency users here, and to refuse such a market is at least short-sighted.
“Yes, these companies can pay more attention to other jurisdictions. But abandon the US market entirely? No, hardly.” Chainalysis co-founder Jonathan Levin.