Amid increased regulatory scrutiny in the United States, Europe has become an attractive destination for crypto firms. Galaxy Digital, the crypto venture led by US billionaire Mike Novogratz, is now venturing into the European market for greener pastures.
“The European market demand that we’re seeing, combined with the regulatory framework established by Mica, is robust. That makes Europe a desirable destination for crypto firms to build and grow. We’ve seen a lot of competitors exit the space and that’s offered a unique opportunity for us.”
The latest development paints a striking contrast to the regulatory landscape for digital assets in the United States, which has thus far failed to offer clear guidance for the cryptocurrency industry.
Marshall, who joined the investment group in June, explained to the Financial Times that one of the pivotal factors influencing this decision was Europe’s progress in developing legal frameworks for trading digital assets.
The New York-based firm had been reporting negative quarterly revenues since late 2021. With the subsequent decline in cryptocurrency prices, Galaxy Digital was forced to reduce its workforce by 20%. Its financial losses were further amplified following the collapse of FTX, as the company had more than $76 million in exposure to the bankrupt exchange.
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