Coinbase Crypto Exchange Considers Overseas Trading Platform Amid U.S. Crypto Crackdown – Here's What You Need to Know
Coinbase is considering setting up a digital asset exchange outside the United States amid increasing regulatory pressure and a souring banking climate for crypto firms.
The largest cryptocurrency exchange in the U.S. has contacted its institutional clients about plans to establish a new crypto trading platform offshores, Bloomberg reported, citing three people familiar with the matter.
The report added that during talks with market makers and investment firms, the crypto exchange suggested setting up an alternative venue, away from the main Coinbase marketplace, for global clients. Coinbase has not yet decided where the new platform might be based.
Without confirming the plans, a Coinbase spokesperson said the exchange assesses geographic options and meets “with government officials in high-bar regulatory jurisdictions” as part of its mission to push for global crypto adoption.
The potential expansion by Coinbase comes in the wake of heightened regulatory scrutiny in the US. Specifically, the SEC has ramped up efforts to mitigate the risks that cryptocurrencies pose to the broader financial system by cracking down on crypto companies.
Back in February, the SEC reached an agreement with crypto exchange Kraken to stop offering staking services or programs to clients in the country and pay $30 million to settle allegations that failed “to register the offer and sale of their cryptoasset staking-as-a-service program,” which the commission qualified as securities.
Furthermore, the agency has threatened Paxos, a US-registered firm that issues Binance’s stablecoin Binance USD (BUSD), with legal action due to its issuance of BUSD tokens. The agency argued that BUSD is considered an unregistered security.
The SEC has
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