Coinbase Considering Overseas Trading Platform
• Coinbase is considering setting up a digital asset exchange platform outside of the United States in response to increased regulatory pressure and a souring banking climate for crypto firms.
• The largest cryptocurrency exchange in the US has contacted its institutional clients about plans to establish a new crypto trading platform overseas.
• Coinbase CEO Brian Armstrong has warned that a hostile regulatory approach by the SEC could drive the crypto industry outside of the United States.
Coinbase Crypto Exchange Considers Overseas Trading Platform
Coinbase, the largest cryptocurrency exchange in the U.S., is considering setting up a digital asset exchange platform outside of the United States amid increasing regulatory pressure and a souring banking climate for crypto firms. The company has contacted its institutional clients about plans to establish a new crypto trading platform offshores, Bloomberg reported, citing three people familiar with the matter.
What You Need To Know
During talks with market makers and investment firms, Coinbase suggested setting up an alternative venue away from its main marketplace for global clients. The actual location of this new platform hasn’t been decided yet; however, Coinbase spokesperson stated that they assess geographic options and meet “with government officials in high-bar regulatory jurisdictions” as part of their mission to push for global crypto adoption.
Regulatory Hostility In The US Grows Amid Banking Crisis
The potential expansion by Coinbase comes at a time when heightened regulatory scrutiny is being faced by many US-based companies in the space. Specifically, SEC has taken measures such as reaching agreements with Kraken to stop offering staking services or programs to clients in America and threatening Paxos with legal action due to its issuance of BUSD tokens – all this just to mitigate risks associated with cryptocurrencies posed on broader financial system. Further worsening environment for crypto firms here is shutting down major banks like Silvergate Bank and Signature Bank which were friendly toward cryptocurrencies.
Armstrong Criticizes SEC’s Approach
In light of such events, Coinbase CEO Brian Armstrong criticized SEC’s approach stating that it could lead to exodus of entire cryptospace out of United States if not handled well enough soon enough. He further added that almost all major financial infrastructure projects are now based out side US owing to stricter regulations here as compared other countries around world like Singapore and Switzerland which have much more favorable environments allowing these companies operate without fear or any kind regulation violation related issues .
Conclusion
To conclude, Coinbase’s plan to set up an offshore digital asset exchange platform points towards growing concern among cryptospace players over hostile regulations here which if unresolved soon might lead them consider relocation their base countries altogether leading into great loss for country itself due lack talent pool generated within it .