Crypto is going overseas unless the US changes its regulatory stance: Coinbase CEO

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Brian Armstrong – CEO of Coinbase – believes that cryptocurrency entities based in the US and UK could move to other countries if national watchdogs fail to enforce appropriate industry legislation.

He also hinted that his exchange may consider such a move if the regulatory situation in the United States remains the same.

“It’s all on the table”

According to Armstrong, US and UK authorities should enforce appropriate crypto rules to prevent the exodus of local businesses to other destinations:

“That’s why we need clarity on legislation and regulations ashore because if the UK doesn’t have that, if the US doesn’t have that, these businesses are going to be built in offshore paradises.”

Brian Armstrong, source Bloomberg

The CEO believes that the infamous FTX crash in November last year highlighted the importance of applicable crypto rules.

He pointed out that the UK has already started to work in this direction, praising its efforts to “move quickly on sensible regulation of crypto to boost both economic growth and consumer protection.”

When asked if Coinbase could move to another country, Armstrong said “everything is on the table, including relocation or whatever is necessary.” While he thinks the United States could be a key market for the crypto industry, the current regulatory uncertainty is boosting this potential:

“I think in a number of years, if we don’t see that regulatory clarity emerging in the United States, we may have to look at investing more elsewhere in the world.”

Coinbase’s problems in America

The US SEC launched an investigation last year, suspecting that some of the cryptocurrencies listed on the platform are unregistered securities.

The Commission struck again in March of this year by issuing a Wells v. Coinbase opinion. The potential enforcement action could relate to the exchange’s Earn, Prime, and Wallet products. Armstrong remained unfazed by the SEC charges, saying:

“While we understand this is all part of the journey to reform our financial system, we are right about the law, confident about the facts, and welcome the opportunity for Coinbase (and by extension the broader crypto community) to appear in court.”

Coinbase isn’t the only US-based crypto firm to have a dispute with the SEC. The latter questioned Kraken in February this year about a possible violation of the rules when offering securities as staking services to US users.

The platform ended those offers and paid $30 million in refunds, prejudgment interest and civil penalties.

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