• Animoca Brands CEO Yat Siu said that North American crypto entrepreneurs are facing more struggles than other regions due to macroeconomic and regulatory conditions.
• Siu noted that new startups can still raise funding from venture firms, but the current crypto downturn and higher interest rates have made it difficult for newcomers.
• Siu also spoke about the contrasting regulatory environments across countries, with North America having stricter regulations compared to Asia and the UK.
Crypto Struggles Predominantly North American
Animoca Brands CEO Yat Siu recently spoke about the struggles faced by crypto entrepreneurs in North America due to macroeconomic and regulatory conditions. He expressed his bullish sentiment for the future, noting that despite valuations coming down, there is a rise in builders, smart contracts being deployed, and people entering the industry.
Newcomers Affected By Crypto Downturn
Siu stated that while new startups can still raise funding from venture firms, they face difficulty due to higher interest rates and current cryptocurrency prices. According to PitchBook Crypto Report for Q1 2023, total investments in cryptocurrency companies dropped 11% quarter-over-quarter with only $2.6 billion being raised across 353 investment rounds.
Regulatory Environment In North America Vs Other Regions
The US Securities and Exchange Commission (SEC) has launched a crackdown on crypto exchanges by labeling over 160 cryptocurrencies as securities along with filing lawsuits against major exchanges like Binance and Coinbase. This stands in contrast to Hong Kong’s financial regulators who implemented a licensing system for crypto businesses in order to address the risks associated with the market, as well as UK legislation allowing regulators to introduce rules for crypto businesses.
Task Force On Promoting Web3 Development In Hong Kong
Siu was appointed today to Hong Kong’s Task Force on Promoting Web3 Development which will focus on developing local blockchain technology applications such as digital wallets and decentralized finance projects. The task force will also provide guidance on how companies should take advantage of these technologies while navigating existing regulations.
North American investors face difficulty when investing into cryptocurrency given the lower prices combined with stricter regulations compared to other regions like Asia or Europe. However, despite this situation Yat Siu remains optimistic about the industry’s future prospects given developments around Web3 technologies such as digital wallets and decentralized finance projects taking place in places like Hong Kong where he has been appointed onto their Task Force on Promoting Web3 Development.