Blockchain Capital mulls emerging crypto hub move amid US crackdown

Quick Take

  • Blockchain Capital’s CEO said the firm is exploring decentralizing its “financial and human capital.”
  • The San Francisco-based investment firm manages some $2 billion in assets.

Blockchain Capital, one of the crypto sector’s most active venture investors, is weighing the benefits of several en vogue international crypto hubs amid a sector crackdown by authorities in the United States.

Bart Stephens, founder and managing partner of the San Francisco-based company, said in a statement to The Block that it is “no secret that the current administration has become overtly hostile to crypto by allowing Elizabeth Warren and Gary Gensler to decide what next-generation internet and financial technology will be available to Americans.”

“While the U.S. is offshoring blockchain technology innovation, other jurisdictions like the UK, the UAE, and Hong Kong are actively courting U.S. entrepreneurs and venture capital firms like Blockchain Capital. Crypto is a global industry and is based on the concept of decentralization so we are exploring decentralizing our financial and human capital,” he added.  

Migration patterns

The news comes during a period of drastic action by U.S. regulators in the wake of FTX’s collapse late last year.

This year alone, the Securities and Exchange Commission has filed charges against multiple crypto outfits including Justin Sun and his companies, along with Bittrex and Gemini, and some celebrities for endorsing cryptocurrencies. Concurrently, two crypto-friendly banks in the U.S. — Silvergate Bank and Signature Bank — were shut down by regulators, leaving precious few banking options for startups in the space.