US-based crypto startups account for 45% of all venture capital (VC) investments in the crypto industry in Q2 2023 despite the increasing regulatory scrutiny in the country, with startups in the “trading category” drawing more capital, a recent study by crypto investment firms Galaxy Digital reveals. The UK and Singapore attract 7.7% and 5.7% of the capital investment respectively. However, the overall VC investment in crypto and blockchain firms has seen a declining trend, hitting $720m in Q2 2023, which is the lowest since the onset of the pandemic in Q3 2020.