U.S. loses top spot as crypto leader, these countries join the race

On May 23, 2023

The UAE might leave the U.S. behind as a cryptocurrency leader, according to an ARK Invest analyst.
Several U.S.-based crypto enterprises are already looking overseas.

The United States risks losing its status as a cryptocurrency leader to countries such as the United Arab Emirates, Korea, Australia, and Switzerland, according to ARK Invest analyst Yassine Elmandjra.

In a recent note to ARK Invest clients, Elmandjra cited the recent crypto-related pullbacks of trading firms Jane Street and Jump Trading as early signals of a broader reaction to the country’s unstable regulation.

He said:

“In the U.S., regulatory uncertainty seems to be discouraging both existing firms and new entrants in the crypto space.”

Elmandjra noted that the United States’ crypto liquidity has “diminished considerably,” noting that Bitcoin’s [BTC] trade volume in the U.S. had decreased 75% in the last two months. According to Coin Metrics, it dropped from $20 billion each day in March to $4 billion in the last week.

UAE becoming crypto-friendly

With the U.S. becoming increasingly hostile to digital assets and crypto firms, several enterprises are looking overseas.

The UAE’s hopeful regulatory approach towards digital assets, according to Saqr Ereiqat, co-founder of venture-building firm Crypto Oasis, makes it an “ideal” place for new and current crypto enterprises. He made these remarks at the Dubai FinTech Summit, which took place last month.

In a fireside chat at the Dubai FinTech Summit, Coinbase CEO Brian Armstrong shared similar concerns. According to the executive, the U.S. may be “a little bit behind” in terms of technology.

Coinbase, which is suing the U.S. Securities and Exchange Commission (SEC) for its ambiguity on crypto regulation, has stated that it is now examining the UAE as a “strategic hub” for its business ventures.

During a fireside discussion at the event, Ripple [XRP] CEO Brad Garlinghouse also expressed his dissatisfaction with restrictions in the U.S. According to Garlinghouse, the corporation is ready to spend $200 million defending itself against the SEC.

This article originally appeared here.