Coinbase CEO Plans Relocating Company Away from the US. If the United States doesn’t modify its approach to regulation, the cryptocurrency exchange may think about relocating its headquarters elsewhere.
Keynotes
- Coinbase CEO Brian Armstrong commented about it at a fintech conference in London.
- Coinbase has been informed by the Securities and Exchange Commission (SEC) of its intention to take enforcement action.
According to CEO Brian Armstrong, if the US doesn’t modify its approach to regulation, cryptocurrency exchange Coinbase may think about transferring its headquarters abroad.
Armstrong’s comments, which emphasized the ongoing battle for regulatory clarity in the US, suggested that all possibilities were being investigated, including moving to a nation like the U.K. that would provide a more hospitable regulatory climate.
Regarding certain cryptocurrencies and producers supplied by the exchange (such as Coinbase Wallet and Coinbase Earn), the SEC issued a Wells notice to Coinbase, a formal warning that the agency may seek legal action. Despite the regulatory pressure, the crypto giant declared that it would continue its business as normal.
“The US has the potential to be an important market in crypto, but right now, we are not seeing that regulatory clarity needed,” Armstrong said, adding that the UK is Coinbase’s second largest market globally by revenue. “I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider investing more in other regions of the world.”
Brian Armstrong
Although Armstrong has been outspoken about the lack of clarity in the current US crypto regulations, such a move represents an increase in rhetoric.
The possible move of Coinbase’s corporate headquarters might have a significant impact on both the company and the US crypto market. Coinbase has been crucial in promoting the use of digital currencies in the United States as one of the biggest and most powerful exchanges.
Given that US lawmakers have not yet reached consensus on a number of proposals that may create specialized regulation for Coinbase and the cryptocurrency industry, a possible departure could allow nations with more progressive and open regulatory regimes, like the U.K., to take the lead.
