Why UK Crypto Manager Tap Global Is Entering the US—Despite an Uncertain Regulatory Environment

Crypto management company Tap Global has expanded its operations to the United States despite industry-wide concerns about regulation in the region.

Tap Americas now offers trading services for multiple digital assets including Bitcoin, Ethereum, XRP and USDC to US customers in 48 states. Starting today, Tap Global will begin operating in 48 states. After its initial launch, it's looking to add New York to that list soon.

In the wake of the FTX crash, US regulators have gone after crypto companies—particularly Binance, Coinbase, and Kraken. Due to this regulatory environment, many companies – such as Bittrex – have been forced to leave the country, while others (ie Binance) have been forced.

But Tap Global believes it will mitigate any potential risk of going into the US market through its partnership with Chicago-based infrastructure platform ZeroHash.

Zero Hash has gone to great lengths to stay in the good graces of regulators. In the year By 2022, the US B2B company has complied with new travel rules from global regulator the Financial Action Task Force (FATF) to launch a consortium of companies partnering with Coinbase, Robinhood and others. The rule was updated last year.

“The control risk is theirs. [Zero Hash]rather than us. We operate under their regulatory framework, so we are covered. Tap Global Board Member John Taylor told Decrypt. “In theory, we should have reduced almost all of that regulatory risk as long as we weren't doing anything completely stupid or illegal or fraudulent.

In partnership with Zero Hash, Tap Global is adopting the Chicago-based company's regulatory framework. And now, Tap Global claims, any regulatory oversight is to combat zero hash. In turn, the risk of entering the U.S. market becomes more of an investment risk than a regulatory one, Taylor explained.

The US crypto market is huge, giving the company a big boost. So it will be high risk, high reward, according to Tap Global. After all, the company is gaining access to an estimated 93 million Americans who currently own cryptocurrency, according to Security.org.

“Entering this market is an important milestone for us,” Tap Global CEO Arsen Torosian told Decrypt. The launch will not only increase our user base, but also act as a catalyst for our planned further geographic expansion, such as Canada and Latin America.

Tapp Global execs say they are proud of their “first directive,” which Zero Hashem says follows. By demonstrating this approach in the US, he sees the opportunity to establish himself as a “trusted actor” companies have left because of the regulatory environment.

Zero Hash has provided similar services to companies such as MoonPay, Stripe and DraftKings, according to its official website.

Edited by Stacy Elliott.