Companies are actively looking for new banking partners as the regulatory climate in the US has now turned sour.
Coinbase, the leading American crypto exchange, is currently weighing its options regarding the creation of a new crypto trading platform. According to a Bloomberg reportthe platform will be located outside of the United States, and Coinbase has already started talking about the move with institutional clients.
According to the report, the exchange has yet to decide on the particular location that will be used for the proposed trading platform. However, the decision seems to be in line with the recent aggressive approach of US regulators towards the crypto industry.
Regulatory Actions Toughen in the US
Following the multiple accidents that occurred in the crypto space in early 2022, scrutiny of the sector has increased. However, the November crash of crypto exchange FTX caused regulatory actions to rise multiple folds. It was a major situation that had a contagion effect throughout the crypto industry and even beyond.
In addition, there is also the recent failure of big-name financial institutions like Silvergate Bank, Signature Bank, and Silicon Valley Bank, which were all backers of crypto. Its sudden failure has raised even more concerns and now lawmakers may have had enough.
Interestingly, however, Coinbase is not alone in this line of thinking. There are several other crypto-based companies in the US that are currently looking to establish themselves in other jurisdictions. Firms are actively looking for new banking partners as the regulatory climate in the US has now turned sour.
To put the above statement into perspective, Switzerland-based Sygnum and Bank Frick in Lichtenstein have confirmed that there are a growing number of requests from offshore companies looking to open accounts with them. Unsurprisingly, most of the companies are based in the United States.
Coinbase Still Interested in Global Cryptocurrency Adoption
Meanwhile, despite the current situation, Coinbase remains dedicated to its cause of ensuring global crypto adoption. According to a company spokesperson, the company is currently weighing geographic options. Additionally, Coinbase has also been meeting “with government officials in high-level regulatory jurisdictions.”
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Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from cryptocurrency, however, Mayowa’s imagined distractions include soccer or discussions of world politics.
