Crypto champ Coinbase plots UK decision as Biden punishes tech

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Coinbase mulls move to UK as Joe Biden punishes fintech companies in the US.

Americas’ failure to put in place a regulatory framework for cryptocurrencies is hitting the industry and could push Coinbase, which has 110 million users, to relocate, its chief executive has warned.

Speaking during a conversation with former Chancellor George Osborne at the Innovate Finance Global Summit on Tuesday, Brian Armstrong said: Silicon Valley has a resource curse.

He accused America of dragging its feet on crypto regulation and compared the lawmakers’ approach to that of countries that are economically underperforming despite an abundance of natural resources.

Mr Armstrong said: They have the goose and yet they want to punish those things they take for granted and try to extract as much as they can.

He added: The UK is our second biggest market. We don’t see regulatory clarity in the United States. We may have to consider investing elsewhere. Everything is on the table, including the move.

In an interview with BBC Radio 4 earlier on Tuesday morning, Mr Armstrong said if he could re-list his business he would consider the London Stock Exchange rather than New York.

In a different world, going back, we may have considered it honest at this point, Mr. Armstrong said.

The UK has an advantage over the US because the Financial Conduct Authority oversees both commodities and securities, while in America there is a turf battle between two separate regulators who have released contradictory statements, Mr. Armstrong said.

Coinbase, which is so far the only publicly traded company in the U.S. crypto space, may have to go through the U.S. court system for regulatory clarification, he added.

Mr Armstrong’s comments followed a warning from Sir Jon Cunliffe, Deputy Governor of the Bank of England, on Monday that cash would become less usable as shops increasingly reject banknotes.

The Bank is consulting on the introduction of a digital ledger and exploring the possibilities of a system of stablecoins that are backed by central bank money as the use of cash declines.

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