The main American cryptocurrency exchange Coinbase is currently evaluating its options for creating a new platform for the exchange of cryptocurrencies. According to a Bloomberg article, Coinbase has already begun discussing the move with institutional clients.
According to the article, the exchange has yet to decide on a specific location for the proposed trading platform. However, this decision seems to be in line with the recent aggressive approach of US regulators towards the crypto industry.
Regulatory measures tighten in the US
After numerous disruptions in the crypto space in early 2022, this sector has become the focus of increased attention. However, the collapse of the FTX cryptocurrency exchange in November increased the regulation. This is a serious situation that has had an impact on the entire crypto industry and even beyond.
In addition, the recent collapse of well-known financial institutions such as Silvergate Bank, Signature Bank and Silicon Valley Bank, which supported the cryptocurrency, has raised even more concerns. Their sudden bankruptcy caused even more anxiety, and legislators may have had enough.
Interestingly, Coinbase is not the only one who thinks so. Several other U.S. crypto companies are currently looking to expand into other jurisdictions. These companies are actively looking for new banking partners as the regulatory climate in the United States has soured.
To put the above statement into perspective, Switzerland-based Sygnum and Liechtenstein-based Bank Frick confirmed an increase in inquiries from offshore companies looking to open accounts with them. As you might expect, most of these companies are based in the United States.
Coinbase remains committed to global cryptocurrency adoption
Despite the current situation, Coinbase remains true to its goal of enabling the global adoption of cryptocurrencies. The company is currently evaluating geographic options, a company spokesperson said. In addition, Coinbase also met with “government officials in jurisdictions with very strict regulations.”
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