Coinbase, the largest publicly-traded US-based cryptocurrency exchange is allegedly preparing to open a new exchange for international clients. According to a report from Friday, the company notified its institutional clients and still hasn’t decided on where the new entity will be headquartered.
Coinbase In Talks to Set Up a New Exchange for Institutional Clients
According to a Friday report, Coinbase recently notified its institutional clients of its plans to potentially set up a new cryptocurrency exchange that would cater to international customers. The company still hasn’t decided on where it would headquarter the new entity but allegedly stated it is encouraged by recent developments in the EU and the UK.
Numerous voices from within the industry have previously expressed concern that the combination of the hawkish regulatory stance and a lagging regulatory framework could heavily impact crypto adoption in the US and cause the nation to lose its innovative edge when it comes to blockchain. When he recently testified before a congressional subcommittee, Coinbase’s Chief Legal Officer Paul Grewal identified the EU, the UK, Australia, and Singapore as examples of countries taking the lead when it comes to digital assets.
Reportedly, one of the exchange’s primary drivers for the expansion is its desire to boost global crypto adoption. The regulatory framework pertaining to digital assets in the US has been broadly described as uncertain. Multiple companies have complained that the SEC is continuously failing to provide clear guidelines, despite claiming that the guidelines are in place. The agency has also been criticized from within with Commissioner Hester Peirce voicing a particular concern for its tendency to use enforcement actions to inform about policy.
US Regulatory Pressure Tightens as Crypto-Friendly Banks Go Under
The news of Coinbase’s overseas plans comes after more than a month of tribulation within the United States. The first half of March was marked by the failure of three major banks—two of them being important partners of the cryptocurrency industry—and February saw an aggressive move by the SEC both against staking, and stablecoins.
While the closing of Silvergate Bank was not entirely unexpected considering that the company was heavily affected by the downfall of FTX and the ensuing contagion, Signature’s closure came as a bigger surprise. The events also undermined the confidence in the entire banking industry and created a crisis that is yet to be resolved despite the generous help provided by the federal authorities.
February, on the other hand, saw an assault on Kraken’s staking service which ended with a $30 million settlement with the SEC. In the same month, Paxos was ordered to stop minting the stablecoin BUSD and received a Wells notice from the Commission alleging the token is an unregistered security. The atmosphere of uncertainty led to several false alarms including the now-denied news that Binance would be leaving the US and Coinbase CEO’s claim that the SEC is planning to ban staking in the country.
This article originally appeared on The Tokenist
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