Hong Kong-based blockchain unicorn, Animoca Brands, has decided to shift its strategic focus to global markets following recent regulatory challenges in the United States. The Securities and Exchange Commission (SEC) labeled Animoca’s SAND cryptocurrency as unregistered security and targeted prominent exchanges like Binance and Coinbase Global.
Yat Siu, co-founder and chairman of Animoca Brands, shared that the company operates globally and is not solely reliant on any single territory. Siu stated that the SEC’s actions would have a limited impact on the company’s presence in broader markets where the Sand token is widely accepted and available, particularly in progressive jurisdictions such as Hong Kong and Japan.
In response to the growing regulatory scrutiny and what Siu perceives as a “blockchain-hostile” approach in the United States, Animoca Brands has taken proactive measures to prioritize other markets. The company aims to mitigate potential setbacks resulting from the SEC’s actions by expanding operations and strengthening its presence in regions outside of the US.
While Coinbase has maintained its stance of not delisting the cryptocurrencies mentioned in the SEC complaint, other exchanges carefully review the SEC’s analysis to determine their appropriate course of action. Famous US brokerage firm Robinhood is actively assessing the SEC’s report to determine if any actions, such as delisting tokens from its platform, are necessary.
Sebastien Borget, co-founder and COO of The Sandbox, a virtual world built on blockchain technology and a prominent offering from Animoca’s wide range of products, responded to the SEC’s claims on Wednesday. Borget stated that the SEC’s classification of their token as a security does not impact the company’s day-to-day operations. He expressed disagreement with the SEC’s characterization of tickets.
Recent reports indicate that Animoca Brands has been making significant investments in the Middle East and other regions to capitalize on emerging opportunities as part of its global diversification strategy. Following this news, the price of SAND reflected a slight decline of 0.57%, currently standing at $0.49.
