Previously, the firm operated from out of Hong Kong. It announced on Monday that it had registered its Bahamian subsidiary, FTX Digital Markets, with the Securities Commission of the Bahamas. Now, the company has moved its operational headquarters to the same place.
Asides from the registration, the firm announced Ryan Salame as the new CEO of the Bahamian branch. Previously, Salame served as the head of over-the-counter with Alameda Research.
There are indications that the move out of China may have been influenced by the recent clampdown by the Bank of China. The PBoC declared an all-out war against crypto-related services in the country on Friday. Earlier in May, it had also banned crypto mining causing a mass exodus of crypto businesses.
Meanwhile, it’s not just China. Countries like such as Australia, Japan, and South Africa are also considering enacting stricter crypto directives. With China and others tightening a noose around FTX’s neck, it only stands to reason that FTX will migrate operations to where digital assets seem to have been a better embrace. It’s worthy of note that the Bahamas passed laws on cryptocurrencies.
FTX to Cooperate with Regulators
Despite relocating, the FTX spokesperson reiterated the firm’s commitment to abiding by regulations. FTX spokeswoman Natalie Tien told Bloomberg on Friday, “We are committed to maintaining a close working relationship with local regulators to help promote the growth of crypto and we are further committing to providing all our clients with a safe, trustworthy and compliant exchange.”
She further noted the company’s excitement to participate in the regulations. However, she stated that the company would henceforth prioritize offices in locations without travel restrictions.
CEO of FTX, Sam Bankman-Fried also hailed Bahamas ‘proactive stance’ on digital assets.
Despite being established in just 2019, FTX is now one of the largest platforms for crypto derivatives trading. The firm raised $900 million in a fundraising round achieving a valuation of $18 billion. Meanwhile, FTX US continues to record in terms of the trading volume. So far in 2021, the company has achieved a 5% growth.