One of the largest crypto-derivatives exchange, FTX has relocated its headquarters from Hong Kong to the Bahamas.
The move was confirmed by an FTX spokeswoman via email on Monday, following news that FTX Trading Ltd.’s Bahamian subsidiary, (FTX Digital Markets) had been registered as a digital assets business by the Securities Commission of the Bahamas, and that Ryan Salame, former head of over-the-counter at Alameda Research had been named CEO of FTX Digital Markets.
One of the key reasons for the transfer to the Bahamas from Hong Kong was the proactive position adopted by the Bahamas and its regulatory agencies on cryptocurrencies, according to Blockworks, citing statements from FTX Founder and Chief Executive Officer Sam Bankman-Fried.
The action comes as the Bitcoin industry’s regulatory difficulties become more prominent. Not only are US officials attempting to tighten up on the sector, but China’s central bank deemed all crypto-related transactions unlawful on Friday, adding to a months-long crackdown.
Thailand, South Korea, and the United Kingdom are among the governments that have recently increased their scrutiny of cryptocurrency.
“We are committed to having a tight working relationship with local regulators to assist encourage the growth of cryptocurrency, and we are also committed to providing all of our clients with a safe, trustworthy, and compliant exchange,” FTX spokesperson Natalie Tien wrote in an email on Friday.
“We are pleased to participate as jurisdictions implement comprehensive crypto regulatory systems. Furthermore, we are prioritizing offices in jurisdictions where there are no travel restrictions.”
Bankman-Fried is now in the United States, but will fly to the Bahamas in early October, according to Tien, and will “continue to travel in-between places.” According to CoinGecko, FTX is the second-largest derivatives exchange by 24-hour open interest.
