The United States could run the risk of an exodus of major Web3 and cryptocurrency service providers as the Securities and Exchange Commission (SEC) takes action against Coinbase and Binance.
Sergej Kunz, co-founder of decentralized finance (DeFi) protocol 1inch Network, believes the SEC’s enforcement action against the two centralized exchanges could have a negative effect on the growth of Web3 in the U.S.
Related: SEC lawsuits against Binance and Coinbase unify the crypto industry
Speaking to Cointelegraph during Money 20/20 in Amsterdam, which has long been a popular global fintech event focused on payments and financial service providers, Kunz highlighted his belief that regulatory uncertainty in the U.S. could hurt the industry:
“I would say the same as Brian Armstrong. It’s killing innovation in the U.S. All the companies there are thinking of moving to another country.”
Kunz added that he had witnessed Coinbase’s CEO holding talks with United Arab Emirates delegates earlier this year exploring the possibility of setting up shop in the Middle East. Within a few weeks, news broke that Coinbase is indeed looking to establish a base of operations in the UAE.
Events in the U.S this week are a stark contrast to the experience at Money 20/20, where a plethora of household names in TradFi were interspersed with a handful of companies and…
