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When U.S. entrepreneur Bharath Rao looked around for the best place to raise money for his crypto-currency derivatives trading business, the United States did not make his list.Confronted with national regulators' intensifying scrutiny of digital currency fund-raising, known as initial coin offerings, many entrepreneurs are moving businesses to locations more welcoming to crypto-currencies and known for low taxes.The numbers compiled by crypto-currency research firm Smith + Crown show how national regulators' attempts to curb coin sales may just shift business elsewhere.The United States leads with 34 digital currency startup registrations so far this year, but that reflects Silicon Valley's role as a technology hub and the depth of U.S. financial markets rather than a welcoming regulatory climate.The Dubai regulator pointed out that seeking out friendly jurisdictions was not unusual, but regulators still needed to warn about the inherent risks in digital coin sales.In the United States, the SEC's July 25 ruling that digital coins should be regulated as securities had a short-lived chilling effect on the crypto-currency market.In fact, out of 15 startups interviewed by Reuters only one, Airfox, sold digital tokens in the United States, raising $15 million last month.
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