CEO Brian Armstrong Says Coinbase May Relocate Due To Regulatory Uncertainty• April 19, 2023 11:52 am • Comments
Due to the current regulatory environment within the United States for the crypto industry, Coinbase CEO Brian Armstrong has just shared that there might be the possibility that Coinbase could move outside of the US in the future.
Specifically, Armstrong said that “anything is on the table” and it was previously announced that Coinbase was already working on setting up overseas operations.
At the moment, it seems that Coinbase has the upper hand within the US market as competitors such as Binance are being targeted by the SEC.
Trending: Ripple RESPONDS To SEC Appeal
Coinbase still has one of the strongest holds of the US market, but that could change very quickly if the SEC decides to target it as well.
It is clear that regulatory clarity must come as soon as possible in order for the crypto industry to truly thrive within the country.
According to CEO Brian Armstrong, #Coinbase may leave the United States if there is no clarity in regulation.
"Anything is on the table, including relocating or whatever is necessary," he said after he got asked whether he could see Coinbase leaving the U.S. pic.twitter.com/MS3GHw50Cg
— news.web3📰 (@arr1ex) April 18, 2023
However, it seems like regulators were targeting the entire industry and not just one firm. He further added,
“I think the U.S. has the potential to be an important market for crypto, but right now we are not seeing that regulatory clarity that we need. I think in a number of years if we don’t see that regulatory clarity emerges in the U.S. we may have to consider investing more elsewhere in the world.”
Coinbase’s stock has also been faring immensely well. It was listed as one of the best-performing large-cap stocks of this year. This is despite the fact that the Securities and Exchange Commission [SEC] sent a Wells Notice to the firm.
The U.K. could be on the cards for Coinbase. Armstrong stressed one prominent reason for Coinbase’s potential relocation to the country.
Armstrong had also highlighted the ongoing debate on whether or not the SEC or the CFTC should be in charge of regulating the industry.
Because this debate has not been entirely settled, the lack of regulatory clarity still exists.
This is an issue that is not present in other countries such as the UK as the UK only has one regulatory authority which is called the Financial Conduct Authority.
The fact that Coinbase is even considering a move should be concerning as Coinbase is one of the largest US crypto exchanges that actually attempts to stay compliant with all crypto regulations.
As a result, it is essential that crypto investors and the community start to take action and pressure lawmakers to address the regulatory clarity issues.
Coinbase has said they may leave the USA. IMO, probably to the UK which is the Coinbase CEO went there this week.
If they do it would be a MASSIVE L for the USA.
— Lark Davis (@TheCryptoLark) April 18, 2023
Coinbase is not the only major exchange within the cryptocurrency industry to face penalties in scrutiny.
Recently, the largest exchange by volume in the world, Binance, and its CEO Changpeng Zhao, were sued by the CFTC after alleged regulatory transgressions.
This followed American exchange Kraken’s settling with the SEC in regards to failure to register the exchange’s staking product.
The industry will likely continue to face increasing scrutiny in the United States as it grows bigger, leading to tough decisions for businesses that seek to capitalize on the wealthy American market, but must comply with American regulations.
Coinbase CEO Brian Armstrong calls out the SEC: “We are not seeing regulatory clarity in the 🇺🇸 US. Anything is on the table, including relocating." 👀😮 pic.twitter.com/zETO67bATb
— Decilizer (@decilizer) April 18, 2023
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.