As the United States tightens its grip on
cryptocurrency regulations, Galaxy Digital has set its sights on Europe,
appointing Leon Marshall, a seasoned executive from the crypto industry, to
spearhead its expansion efforts.

This move is in response to what Galaxy Digital’s CEO, Mike Novogratz calls a „legislative stalemate” in the United States.
In June, Novogratz said his company was fast-tracking its plans to relocate its
operations offshore. Novogratz made this announcement during his address at
Piper Sandler’s Global Exchange & Fintech Conference, emphasizing the
difficulties faced by institutional crypto businesses within the current
regulatory environment.

The firm, which operates across various
crypto-related business lines (including trading, asset management, principal
investments, investment banking, and mining), is strategically positioning
itself to benefit from favourable regulations in Europe.

MiCA Regulation Draws Galaxy’s Attention

Earlier this year, the European Union passed the MiCA crypto regulation, which is designed to provide a stable environment for
the crypto industry while safeguarding investors’ interests. Concurrently, the
United Kingdom, under Prime Minister Rishi Sunak, is aggressively positioning
itself as a cryptocurrency hub.

Galaxy Digital, headquartered in New York, faced significant
setbacks during the crypto market downturn. In the second quarter of last year, the firm reported a substantial loss of $555 million.

In addition, the company disclosed a loss of $46 million during the second quarter of 2023. This drop
stands in sharp contrast to the impressive profit of $134.3 million reported
in the previous quarter. According to the company, the primary drivers of this
loss were lower net realized gains on digital assets and net unrealized losses
on investments.

In April, Galaxy Digital partnered with German asset
manager DWS to offer crypto exchange-traded products to investors. The company
termed the collaboration with the institution as a key differentiator for
Galaxy Digital, leveraging its expertise to create tailored solutions for its
clients.

Galaxy Enters Key Partnerships

Steve Kurz, the Global Head of Asset Management at
Galaxy, remarked: „Galaxy’s mission is to empower investors across the
globe with simple and secure access to the digital asset ecosystem, through
best-in-class education and institutional-grade products. By
allying with DWS we are excited to enhance our ability to deliver comprehensive
solutions to European investors.”

Meanwhile, Galaxy forged a strategic alliance with FTX last month. The collaboration is aimed at helping the bankrupt
cryptocurrency exchange to manage and sell its crypto holdings, valued at a
substantial $3 billion.

FTX faces the unique challenge of repaying creditors
in fiat currency, a task made complex by the unpredictable nature of
cryptocurrencies, like Bitcoin and Ether. To address this, FTX turned to
Galaxy Digital to tap into its vast experience, particularly through its
subsidiary, Galaxy Digital.

This article was written by Jared Kirui at www.financemagnates.com.