At least one world superpower is overdue for robust cryptocurrency regulations.
Speaking at BlockShow Asia 2019, Proof of Capital managing partner Edith Yeung called out American regulators for leaving blockchain-based ventures in the dark.
These companies are commonly domiciled in Singapore, Switzerland, or Hong Kong because “they have no idea of what is happening in the US. They don’t want to touch it because of the legal tension.”
Some exchanges are in fact leaving the US amid continued regulatory uncertainties. Last month, Poloniex spun out from Circle to form a new exchange that will not allow American customers to trade on its platform. Binance also specifically established Binance US in conjunction with BAM Trading Services, an approved partner of the Financial Crimes Enforcement Network (FinCEN). Binance US is a separate entity from Binance.com, which used to operate in the US.
Rae Deng, founding partner of the Singapore-based VC firm Du Capital, expressed agreement with Yeng from the BlockShow stage:
“We welcome more regulations as a vacuum of the proper regulation last year or the year before turned into vulnerable situations.”
At the same time, Yeung is cautious about rapidly changing the American regulatory environment. She simply calls for the industry to keep paying attention to the country.
Yeung invests in blockchain and AI startups through Proof of Capital, with a portfolio that includes Stellar, Nebulas, Solana, Oasis Labs, and Hooked, among others.
Deng is backing distributed ledger technology companies, and those that operate in the surrounding ecosystem.