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Galaxy Digital Focusing on Global Markets in the wake of Tightening US Regulators

The cryptocurrency-focused business has over $2 billion in assets under management (AUM) and caters to over 880 institutional investors.

Image Source: Galaxy Digital Site Screengrab (1.1)

Galaxy Digital Holdings Ltd. trades under the ticker symbol GLXY on the Toronto Stock Exchange and has been breaking new ground to bring institutional investors into the crypto market worldwide.

The cryptocurrency-focused business has over $2 billion in assets under management (AUM) and caters to over 880 institutional investors.

In addition, Galaxy Digital Holdings, which Mike Novogratz leads as chief executive officer, has many business lines. These lines of business include crypto trading, asset management, investment banking, and cryptocurrency mining, among others.

Galaxy Digital is subject to the laws and regulations of several countries and states, including all 25 states in the United States and Canada. The corporation has been putting a lot of effort into its business to obtain global regulatory permission to grow its operations exponentially.

In addition, the failure of Terra Luna UST and the FTX crypto exchange, which together led to a loss of more than $70 billion, has awoken the attention of global authorities to the economy of digital assets.

Galaxy Digital's Foray in the Bahamas

Galaxy Digital supposedly obtained authorization from the Securities Commission of The Bahamas in December for enrollment as a digital asset biz under that country's Digital Assets and Registered Exchanges Act. This was done to ensure that the company's future growth would be sustainable.

According to recent reports, Galaxy Bahamas Ltd. would first function as an arm of the firm's trading platform and will conduct its actual operations from the Bahamas. In addition, Galaxy Bahamas will provide market-making & staking services to fund managers interested in gaining exposure to the cryptocurrency industry.

Notably, regulatory attention has already been applied to cryptocurrency staking in the United States. This came about when the SEC sued the Kraken cryptocurrency exchange for selling unregistered securities under its staking program.

Because the United States government has already booked Binance USD (BUSD), cryptocurrency firms in the United States are searching for methods to get registered in countries that favor digital assets.

For example, the United Arab Emirates and El Salvador have seen significant growth in the number of foreign investments in cryptocurrency due to their friendly regulatory environments.

Per Mike Wursthorn, in charge of communications at Galaxy Digital, the company's governance-management& risk-management procedures are consistently applicable wherever the firm does business.

"With the help of our audited financial statements and thorough due diligence on clients and counterparties in every country, we give our clients and shareholders a clear picture of our financial health and business dealings."

However, in light of the aftermath of FTX and Alameda, the crypto activities in the Bahamas can be considered dangerous. In addition, the lawsuit has resulted in losses of billions of dollars incurred by hundreds of institutional investors, some of whom are government institutions.

The company stated in a filing in February that "in light of the FTX dispute, customers, counterparties, and regulatory agencies may view processes inside the Bahamian crypto economic system as high risk than activities in other jurisdictions."  (1)

On the other hand, the cryptocurrency market is more robust than previously, as seen by Bitcoin trading above its levels before FTX. However, the threat of a worldwide recession combined with more governmental scrutiny may cause cryptocurrency values to drop before the year 2023 comes to a close.