Coinbase to Launch Foreign Platform in Response to Regulatory Crackdown
Coinbase, the largest cryptocurrency exchange platform in the United States, is reportedly developing an overseas trading platform as domestic regulators tighten their control over the crypto industry.
According to anonymous sources familiar with the matter cited by Bloomberg, Coinbase is considering setting up a trading network for global customers that would be separate from its main marketplace, which primarily caters to institutional clients.
The move comes at a time of increased scrutiny on the cryptocurrency industry from regulators and lawmakers. Several high-profile incidents in the past year, such as the multibillion-dollar downfalls of Terra and FTX, have put the industry under the spotlight.
In addition, many crypto-friendly banks, including Silvergate and Signature Bank, have fallen under the control of the Federal Deposit Insurance Corporation (FDIC) after experiencing financial difficulties.
The potential expansion of Coinbase’s operations overseas could help the company weather the regulatory storm in the United States. The sources cited by Bloomberg said that Coinbase is in discussions about launching a foreign trading platform to serve global customers in high-bar regulatory jurisdictions. The company is reportedly looking at locations such as London, Tokyo, and Hong Kong for the new platform.
A spokesperson for Coinbase declined to comment on the report. Still, the company told Bloomberg that it is actively engaging with government officials in high-bar regulatory jurisdictions to increase global crypto adoption.
Coinbase CEO Brian Armstrong has previously stated that the company is “embracing decentralization,” diversifying its revenue streams, and calling for more regulatory clarity for digital assets in the United States.
Last month, Coinbase launched a new initiative to build a strong crypto advocacy community that would engage with U.S. regulators. In a blog post, the company encouraged its customers to get involved in shaping pro-crypto policy in the United States.
1/ It’s time to advance pro-crypto policy in all 435 Congressional Districts across the U.S.
Introducing #Crypto435, our campaign to grow the crypto advocacy community and share tools and resources to make your voice heard.
Become an advocate today 👇 https://t.co/TPJhtoP9eC
— Coinbase 🛡️ (@coinbase) February 28, 2023
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“If you love crypto and believe in the potential of web3, it’s more important than ever to advocate for pro-crypto policy in the U.S.,” the post read.
“Their choices will determine how, when, and where YOU can build, buy, sell, and use crypto. We need to make sure they get it right, and that means making your voice heard.”
Despite the challenges facing the cryptocurrency industry in the United States, Coinbase’s potential expansion overseas suggests that the company is still optimistic about the future of digital assets. As the regulatory landscape continues to evolve, companies like Coinbase must be nimble and adaptable to survive and thrive in this rapidly changing industry.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
