According to three persons with firsthand knowledge of the scenario, Coinbase Global Inc. has contacted institutional clients about potential intentions to launch a new symmetric encryption platform abroad. The prospect of creating a different venue for international clients, apart from the main Coinbase marketplace, was discussed in meetings with market makers and investment firms, according to the people, who asked not to be identified because the conversations are private. The discussions are taking place as the US crackdown on cryptocurrency intensifies.
Coinbase hasn’t decided where the platform would be located, but one of the persons said the company has been in contact with market participants about connecting to it. A Coinbase representative declined to comment directly on the conversations, but noted that the company evaluates regional alternatives and talks “with government leaders in high-bar regulatory jurisdictions” as part of its objective to promote the adoption of cryptocurrencies worldwide.
In the wake of numerous regulatory action and bank failures, the American market environment for enterprises dealing with digital assets is still depressing. Despite the fact that Coinbase offers services in more than 100 nations, orders from consumers all over the globe are currently sent to the same US platform.
The exchange wants to establish an alternative venue independent of the main Coinbase marketplace. In fact, Emilie Choi, the Chief Operation Officers (COO), said, “International expansion is going to continue to be a very core part of how we operate.” There has yet to be any confirmation about the location for the new platform, but the countries such as the U.K., UAE, and Hong Kong, all racing to be crypto hubs, are potential candidates.
Coinbase wrote in its fourth-quarter investors’ letter, “Disappointingly, we are not seeing regulators necessarily welcoming transparency and public participation in their rule-making. United States’ agencies, in particular, are demonstrating a disjointed stance regarding crypto that is pushing the industry overseas.”
On Feb. 9, Brian Armstrong cautioned that they were hearing rumors that the SEC would like to “get rid of crypto staking in the U.S. for retail customers.” He said he hopes that is not the case as “I believe it would be a terrible path for the U.S. if that was allowed to happen.”
Armstrong highlighted some of the benefits of staking, adding that it brings many positive improvements to the industry. These include scalability, increased security, reduced carbon footprints, and enabling users to participate in running a crypto network. We’re hearing rumors that the SEC would like to get rid of crypto staking in the U.S. for retail customers. I hope that’s not the case as I believe it would be a terrible path for the U.S. if that was allowed to happen.