The largest cryptocurrency exchange in the United States may be considering opening operations elsewhere.
Coinbase has reportedly been in talks with institutional investors about opening an offshore cryptocurrency exchange.
According to sources cited by Bloomberg, “discussions with market makers and investment firms addressed the possibility of establishing an alternative location, away from Coinbase’s main marketplace, for global clients.” The sources went on to explain that the company has not yet decided on the location in which the platform will be based.
Recent regulatory actions have led to a change in sentiment regarding the advancement of the bitcoin and cryptocurrency industry in the United States. Major exchanges have faced regulatory headaches, with Kraken settling $30 million in fines in an SEC lawsuit, and Coinbase owes $100 million to New York state after regulators alleged that Coinbase “violated anti-money laundering laws by allowing users to open accounts without conducting sufficient background checks.”
In addition, the current administration has been paying close attention to the development of digital assets in the US, with the White House publishing a “Cryptocurrency Risk Mitigation Roadmap” in January 2023. On top of that, the US Treasury has begun its investigation into how it can potentially implement or adopt a CBDC, which may take the form of a privatized currency (such as a stablecoin) or, more likely, an adaptation of the current system, in the form of fednow.
The path that the US federal government continually demonstrates that it wants to take is that of a regulated government currency, be it the dollar or something similar, and not bitcoin. But state governments have shown support for the sovereign use of bitcoin, including Arizona and Wyoming. It shows that there are differing opinions on the best path forward for US monetary decisions.
However, serious attention should be paid to the current cracks showing in the American banking system, and what this could mean for the future. Building on money that is built to hold its value, versus money that is degraded as a result of credit expansion cycles and their impacts on the banking system, is relevant to a prosperous future.
