As regulators ramp up their scrutiny of the cryptocurrency industry, Coinbase is mulling over the possibility of launching a new trading platform in countries outside the United States.
American cryptocurrency market leader Coinbase is currently considering its choices concerning the development of a brand-new trading platform for cryptocurrencies.
According to a report (1) by Bloomberg, the platform will be hosted outside of the United States, and Coinbase has reportedly already begun talks with institutional clients about the relocation.
The exchange has not yet made a decision regarding the specific location that will serve as the trading platform that is being offered.
On the other hand, it seems that the decision is in accordance with the recent harsh attitude that US officials have been taking toward the cryptocurrency business.
Regulation Measures Are Becoming More Strict
As a result of the several collapses that took place in the cryptocurrency market at the beginning of 2022, there has been a raised level of attention directed toward the industry.
However, the failure of the cryptocurrency exchange FTX in November resulted in a significant increase in the number of regulatory proceedings taken.
It was a serious problem that spread throughout the entire cryptocurrency business and even further afield as a result of its infectious impact.
Also, there is the recent failure of notable financial institutions that were supporters of cryptocurrencies, such as Silvergate Bank, Signature Bank, and Silicon Valley Bank, all of which went bankrupt.
Their unexpected failure has created even more concerns, and it’s possible that politicians have now reached their breaking point.
Coinbase is not the only company that has this train of thought, which is an interesting fact. There are a number of more crypto-based companies in the United States that are attempting to establish themselves in other jurisdictions at the moment.
As a result of the recent shift in the regulatory atmosphere in the United States, companies are making significant efforts to find new banking partners.
To provide some context for the preceding statement, the bank Sygnum, based in Switzerland, and the bank Frick, based in Lichtenstein, have both stated that they are receiving an increased number of inquiries from offshore entities wishing to create accounts with them. The US is home to the majority of the companies, as may be anticipated.
Coinbase Is Still Interested in the Worldwide Growth of Cryptocurrencies
In the meanwhile, despite the current state of affairs, Coinbase continues to be committed to its mission of enabling widespread acceptance of cryptocurrencies.
A spokeswoman for the corporation stated that the organization is considering its geographical possibilities at the present time. Coinbase has also been engaging “with government authorities in high-bar regulatory jurisdictions,” according to the company.