Coinbase has faced pressure that has led the CEO to say it may be forced to go international.
Coinbase is considering moving to another country if the negative US regulatory stance on bitcoin and cryptocurrencies continues, according to CEO Brian Armstrong.
“I think if a number of years go by without us seeing regulatory clarity emerge in the United States, we may have to look at investing more in other parts of the world,” Armstrong said. . would have said in response to a question at a fintech conference on Tuesday.
In March, it was reported that Coinbase had been in talks with investors and other interested parties about the potential launch of an overseas exchange. The largest US-based cryptocurrency and Bitcoin exchange by volume, Coinbase has faced increasing regulatory pressures and challenges.
The company was recently obliged to pay $100 million in fines based on regulatory findings that Coinbase posed an increased risk of illegal activity. Additionally, Coinbase recently stated that it may face SEC charges due to potential violations of securities laws. The company underlined its apprehension blog posts which describe how “1 million tech jobs (are) at stake in the United States due to regulatory uncertainty”.
While some US states actively seek to protect bitcoin and the right to mine bitcoin, other legislative bodies see the need for increased regulatory oversight and legislation.
Coinbase isn’t the only major exchange within the cryptocurrency industry to face penalties under intense scrutiny. Recently, the world’s largest exchange by volume, Binance, and its CEO Changpeng Zhao, were sued by the CFTC over alleged regulatory transgressions. This followed US exchange Kraken’s settlement with the SEC regarding non-registration of the exchange’s staking product.
The industry will likely continue to come under increasing scrutiny in the United States as it grows, leading to tough decisions for companies looking to capitalize on the rich US market but must comply with US regulations.