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- 1 Coinbase prefers countries with regulatory clarity for expanding its operations outside the United States.
- 2 The U.S. regulator filed a lawsuit against the biggest crypto exchange in the country, showing the vulnerability of crypto in the region.
The leading cryptocurrency exchange in the United States, Coinbase Global, is seeking new grounds for operations other than the native country. The minimum requirement of Coinbase is to get a region with clear cryptocurrency regulations. Its quest ends with the EU, United Kingdom, Canada, Brazil, Singapore, and Australia-like countries.
Vice presidents for International business and internal policy at Coinbase, Nana Murugesan, and Tom Duff Gordon noted the aforementioned countries in the blog post on September 6, 2023. The blog noted the countries preferable to act as potential markets in the “near-term.”
The expansion of the crypto exchange came in the wake of its prior commitment to take the operations offshore and outside the United States. This is given the unclear crypto regulations and increasing regulatory enforcement despite the regulatory clarity. Such situations make things difficult for crypto companies from both sides and relocating remains the best possible option.
According to the blog post, the regulations on cryptocurrency are part of mainstream conversations in “every part of the world.” The U.S. does not only lag in terms of bringing clear regulations, but it also chooses “enforcement of existing rules and new regulations.”
The vice president duo stated that the countries that Coinbase is opting out of are in the process of authorizing clear crypto rules and regulations in the region. In the process, the crypto company would look forward to acquiring licenses, registering with the local agencies, establishing operations in the region, and strengthening the user base.
The recent instances of expanding to these new countries are following the company’s “go broad go deep” plan.
Coinbase Advances the Expansion Plans
Coinbase brought the plan in May last year and it has taken several steps in that direction since then. The expansion in European Union countries, the United Kingdom, Canada, Brazil, Singapore, Australia, etc. came as the next step in the process.
For the expansion, the crypto exchange is going to set up partnerships with banking institutions and payment service providers globally and locally. It is done so that it can also focus on expanding the fiat ramps to ensure that the governance systems stay compliant with the existing regional regulations.
Coinbase was among the crypto companies that advocated for clear and transparent rules for the burgeoning asset class. However, the SEC filed a lawsuit against the crypto exchange for alleged sales of unregistered securities in June 2023.
Earlier, it used to take proactive measures to collaborate with the financial regulator. But following the legal actions, it ramped up its expansion plan citing the inability of the U.S. to provide clarity on regulations.
The recent post also noted, “We’re committed to helping to update the global financial system and providing more economic freedom and opportunity, and won’t stand idle just because the U.S.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
