• Coinbase is exploring the possibility of setting up a cryptocurrency trading platform outside U.S. regulatory reach.
• This move would allow the exchange to offer its services to a global client base beyond its existing marketplace, while mitigating potential risks from US regulators.
• Potential jurisdictions for this new platform include countries with crypto-friendly regulations and banking systems.
Coinbase Explores Possibility of Establishing Crypto Platform Overseas
Coinbase, the largest crypto exchange in the US, has explored the possibility of setting up a cryptocurrency trading platform in a jurisdiction outside United States agencies‘ regulatory reach. The move would allow expanding its offerings to a global client base beyond its existing marketplace and mitigate potential risks from US regulators.
Regulatory Clampdown Increases Pressure on Crypto Exchanges
With increasing regulatory scrutiny and crypto-friendly banks shutting down operations less than a month apart, the climate for crypto platforms in the US has been worsening. In response to this crackdown against the industry, Coinbase has taken steps to mitigate the impact on its operations by considering establishing an overseas platform for cryptocurrencies trading.
Benefits of Setting up an Overseas Trading Platform
Establishing a crypto-trading platform in a jurisdiction outside of the US regulatory sphere could offer Coinbase access to new markets and expand their reach as well as increase liquidity for institutional clients providing them with more trading options. Additionally, having an international presence could help mitigate any potential risks from US regulators that may arise due to enforcement actions or other challenges faced by Coinbase domestically within their US marketplaces.
Potential Jurisdictions For A New Overseas Platform
Coinbase will need to consider several factors when deciding which country or region is most suitable for its prospective overseas trading platform including those with crypto-friendly regulations and banking systems such as Switzerland, Malta and Liechtenstein all known for embracing digital currencies innovation which could prove advantageous for Coinbase’s development plans moving forward into 2021 and beyond!
Setting up an overseas trading platform could provide Coinbase with greater regulatory flexibility allowing it access to previously inaccessible markets and increase liquidity for its institutional clients whilst also helping protect itself from any potential risk posed by domestic U.S regulators who have recently been clamping down on crypto companies operating within their jurisdiction .