According to a recent report by Bloomberg, Coinbase has considered establishing a cryptocurrency trading platform in a nation beyond the regulatory reach of United States authorities. The article indicates that the cryptocurrency exchange discussed this possible move with institutional customers and market makers.
While the exchange has just lately considered launching a crypto-trading platform outside the US regulatory arena, the move would enable it to extend its operations to a worldwide client outside its current market.
The climate for crypto platforms in the United States has deteriorated as regulatory scrutiny has increased and crypto-friendly banks have ceased operations within a month. In reaction to this industry-wide crackdown, the biggest cryptocurrency exchange in the United States has taken measures to reduce the effect on its operations.
The regulatory and banking situation for crypto firms in the United States has been tough, especially in light of the Securities and Exchange Commission’s (SEC) recent charges that some crypto services delivered within its jurisdiction constitute securities. This has made it difficult for trading systems to operate optimally.
Coinbase might get access to new markets by creating a crypto-trading platform in a nation outside the US regulatory realm. This move might increase Coinbase’s reach and provide them access to markets that were previously unavailable.
Creating a new crypto-trading platform outside the United States might give the exchange with the extra advantage of risk diversification in the event of regulatory issues in the United States. Having an overseas presence might lessen the effect of SEC enforcement proceedings on Coinbase’s business.
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