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Crypto management company Tap Global has expanded its operations to the United States despite industry-wide concerns about regulation in the region.
Tap Americas will now provide U.S. customers in 48 states access to trade multiple digital assets, including Bitcoin, Ethereum, XRP, and USDC. Starting today Tap Global will begin operating in 48 states. It's looking to add New York to that list soon after the initial launch.
Following the collapse of FTX, American regulators have aggressively pursued crypto companies—most notably Binance, Coinbase, and Kraken. As a result of this regulatory environment many companies—such as Bittrex—have left the country while others (namely Binance) were forced out.
But Tap Global believes that any risk that could arise by moving into the U.S. market is minimized through their partnership with Zero Hash, a Chicago-based infrastructure platform.
Zero Hash has gone to great lengths to stay in the good graces of regulators. In 2022, the U.S. B2B firm joined up with Coinbase, Robinhood, and others to launch a coalition of companies committed to staying compliant with a then-new travel rule from international regulator Financial Action Task Force (FATF). The rule was updated last year.
“The regulatory risk is theirs [Zero Hash], rather than ours. We're operating under their regulatory cover, and therefore we're covered.” Tap Global board member, John Taylor, told Decrypt. “In theory, we should have mitigated almost all of that regulatory risk, as long as we don't do anything completely stupid or illegal or fraudulent, which, of course, we're not in the business of doing.”
By partnering with Zero Hash, Tap Global is adopting the Chicago-based company’s regulatory framework. And now, Tap Global claims, any regulatory scrutiny is for Zero Hash to battle. In turn, the risk of entering the U.S. market becomes an investment risk rather than a regulatory one, Taylor explained.
The U.S. crypto market is massive, offering a significant upside for the company. So it'll be high risk, high reward, according to Tap Global. After all, the company is gaining access to the estimated 93 million Americans that currently own cryptocurrency, according to Security.org.
“Entering this market is a significant 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 the further geographic expansion that we have planned, for example Canada and Latin America.”
Tap Global execs said they pride themselves on their “regulation first approach,” something it claims Zero Hash also follows. It sees an opportunity to establish itself as a “trusted actor” by demonstrating this approach in the U.S. in the wake of companies leaving due to the regulatory environment.
Zero Hash has provided similar services for companies like MoonPay, Stripe, and DraftKings, according to its official website.
Edited by Stacy Elliott.