NYC Needs a Crypto Credit Union

No project is going to incorporate or set-up anywhere if the benefits don’t outweigh the costs, and when they do incorporate they are going to do so in the location that offers the most benefits to their project. This means that if NYC wants to attract crypto projects, the city must offer them something that they can’t get elsewhere.

Cryptocurrency projects exist outside the borders of cities, states, and even countries, can easily be operated anonymously and are based on mathematics. By their very nature, such projects do not require a physical presence and thus do not have the same requirements and incentives to incorporate that traditional businesses have. So why do so many crypto startups incorporate in Wyoming, or Singapore, or Switzerland? Because the benefits outweigh the costs. Incorporating in these locations provides the project with legitimacy, resources, or capital that they wouldn’t have otherwise.

If NYC wants to attract cryptopreneurs (crypto industry entrepreneurs), it is going to have to offer something attractive. Currently, any startup in the crypto space faces incredible difficulty accessing capital through traditional means, which drives them into shadow markets and unregulated sources of financing. In fact, at this time the primary ways that companies have been able to access capital have been to either be founded by independently wealthy individuals or participate in legally and morally dubious ICOs. If financial regulators want to decrease the prevalence of such ICOs, then they are going to have to provide…