Pressure on crypto companies in the US has increased recently. This has led US-based crypto companies to look for alternatives.
Sources, who asked not to be named, said in talks with market makers and investment firms that the possibility of establishing an alternative exchange away from the main Coinbase market for global customers was discussed, Bloomberg reported.
Coinbase has hinted at overseas plans before
The exchange wants to create an alternative territory independent of the main Coinbase market. “International expansion will continue to be a very fundamental part of the way we work,” Emilie Choi, Chief Operating Officer (COO) said last month.
There is no confirmation yet on the location of the new platform, but countries such as the UK, UAE and Hong Kong competing to become crypto hubs are seen as potential candidates.
The exchange currently serves customers in over 100 countries, but all transactions are ultimately routed through the same US platform.
Regulatory pressure tightens in the US
The news of Coinbase’s overseas plans comes after more than a month of problems in the US. February saw an aggressive move by the SEC against both staking and stablecoins. The first half of March was marked by the bankruptcy of three major banks, two of which are important partners of the cryptocurrency industry. The events also shook confidence in the entire banking sector and created an as yet unresolved crisis despite generous assistance from federal authorities.
In its fourth-quarter investor letter, Coinbase wrote:
“Disappointingly, we do not see regulators welcome transparency and public participation in their rule-making processes. Institutions in the US, in particular, have a disconnected attitude towards cryptocurrencies, which pushes the industry out.”
The company took over in Turkey
Coinbase took over Rocket Turkey Yazılım Teknolojileri A.Ş. in Turkey last year, renamed Coinbase Turkey Yazılım Teknolojileri A.Ş. had changed.
