Coinbase has faced pressure that has led the CEO to say that it may be forced to go international.
Coinbase is considering setting up shop in another country if the negative US regulatory stance on Bitcoin and cryptocurrencies continues, according to CEO Brian Armstrong.
“I think if several 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,” Armstrong said. reportedly he said in response to a question at a fintech conference on Tuesday.
In March, Coinbase was reported to have been in talks with investors and other interested parties about possibly launching an offshore exchange. Coinbase, the largest cryptocurrency and Bitcoin exchange by volume based in the United States, has faced increasing pressure and regulatory challenges.
The company was recently forced to pay $100 million in fines based on regulatory findings that indicated Coinbase had increased the risk of illegal activity. Additionally, Coinbase recently stated that may face SEC charges due to possible violations of securities laws. The company has highlighted its concern in blog posts describing how “1 million tech jobs (are) at stake in (the) US due to regulatory uncertainty.”
While some US states actively seek to protect Bitcoin and the right to mine bitcoin, other legislative bodies see the need for increased regulatory scrutiny and legislation.
Coinbase is not the only major exchange within the cryptocurrency industry facing sanctions in the scrutiny. Recently, the world’s largest exchange by volume, Binance, and its CEO, Changpeng Zhao, were sued by the CFTC after alleged regulatory violations. This followed US exchange Kraken’s settlement with the SEC regarding the failure to register the exchange’s staking product.
The industry is likely to continue to face increasing scrutiny in the United States as it grows, leading to tough decisions for companies seeking to capitalize on the rich US market but must comply with US regulations.
