Coinbase CEO: Relocation Possible Without Regulatory Clarity In U.S.
Coinbase CEO Brian Armstrong has suggested that the cryptocurrency exchange may consider relocating away from the United States if the regulatory environment for the industry does not become clearer. Speaking at Fintech Week in London, Armstrong said that “anything is on the table, including relocating or whatever is necessary”. He expressed frustration at the lack of regulatory clarity in the US, and indicated that if the situation did not improve, Coinbase may have to invest more in other parts of the world.
Coinbase (COIN) CEO Brian Armstrong indicated that the crypto exchange would consider moving away from the U.S. if the regulatory environment for the industry does not become clearer. https://t.co/om4NxdvqxA
— Wu Blockchain (@WuBlockchain) April 18, 2023
Possible Relocation to UK
Armstrong cited the UK as an example of a jurisdiction that had a more favorable regulatory environment for cryptocurrency companies, due to the presence of only one regulator, the Financial Conduct Authority (FCA), which is responsible for both commodities and securities. By contrast, in the US, there are two separate regulatory bodies, the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), leading to a lack of clarity and even contradictory statements from the agencies’ heads.
Coinbase has also received a Wells Notice from the SEC, warning of impending regulatory action related to the listing of unregistered securities. Armstrong’s comments suggest that this regulatory pressure, combined with the ongoing lack of clarity from regulators, could lead the company to consider moving its operations elsewhere.
Unclear U.S. Regulations
The news of Coinbase’s potential relocation comes at a time of increased scrutiny of the cryptocurrency industry by regulators around the world. Several countries have introduced new rules and regulations to govern the sector, in response to concerns about money laundering, fraud, and other issues. The US has been slower to introduce clear regulations for the industry, leading to frustration among some cryptocurrency firms.
Coinbase is one of the largest cryptocurrency exchanges in the world, with a valuation of around $60 billion. The company went public earlier this year in a much-anticipated IPO, which saw its share price soar on its first day of trading. However, the recent regulatory pressures on the company have led to increased volatility in its share price.
