Coinbase Is Looking To Set Up A New Crypto Trading Platform Offshore Due To Tighter Scrutiny By US Regulators
According to Bloomberg’s sources, Coinbase has notified its institutional clients of its intention to set up a new trading platform offshore. Due to its harsh regulatory environment, the US has made it difficult for crypto firms to do business.
The community believes that the US with its strict stance will miss out on crypto innovation.
Coinbase plans to diversify overseas
The exchange is looking to establish an alternative venue independent of the main Coinbase marketplace. In fact, chief operating officer (COO) Emily Choi said, “International expansion will continue to be a very core part of the way we operate.”
There is no confirmation yet on the location for the new platform, but countries such as the UK, UAE and Hong Kong, all vying to become crypto hubs, are likely candidates.
Earlier, BeInCrypto reported that Coinbase aims to expand internationally over the next eight weeks, starting with Singapore.
“Disappointingly, we are not seeing regulators welcoming transparency and public participation in their rule-making,” Coinbase wrote in its fourth-quarter investor letter. United States agencies, in particular, are increasingly concerned about crypto. displaying an uncompromising stance that is pushing the industry overseas.
US crypto crackdown continues
The collapse of crypto-friendly banks, such as Silicon Valley Bank, Signature Bank and Silvergate Bank, has brought new hurdles for Web3 businesses. Reportedly, the regulators demanded that the banks that submitted bids for Signature Bank “must leave all crypto business.”
While some government officials blamed crypto for the plight of the banks.
According to industry stakeholders, the US government launched Operation Choke Point 2.0 to reduce the banking access of Web3 firms. The anti-crypto stance of the US intensified following the collapse of the FTX exchange in November 2022.
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BeInCrypto has reached out to the company or individual involved in the story for an official statement regarding the recent developments, but has not yet received a response.