Companies are actively seeking new banking partners as the regulatory climate in the United States has deteriorated.
Best US Crypto Exchange Coinbase is currently evaluating its options regarding the creation of a new crypto trading platform. According to a Bloomberg reportthe platform will be located outside of the United States, and Coinbase has already started talking about the move with institutional customers.
According to the report, the exchange has yet to decide on the particular location to be used for the proposed trading platform. However, the decision appears to be in line with recent aggressive approach by US regulators towards the crypto industry.
Regulatory measures tighten in the United States
Following multiple crashes in the crypto space in early 2022, the sector has come under increased scrutiny. However, the month of November FTX Crypto Exchange Collapse caused regulatory measures to multiply the folds. It was a major situation that had a contagion effect on the entire crypto industry and even beyond.
Moreover, there is also the recent failure of renowned financial institutions such as Silvergate Bank, Signature Bank and Silicon Valley Bank, which were all crypto backers. Their sudden failure raised even more concerns and now lawmakers may have had enough.
Interestingly, however, Coinbase is not alone in this line of thinking. In the United States, several other crypto-based companies are currently looking to establish themselves in other jurisdictions. Companies are actively seeking new banking partners as the regulatory climate in the United States has deteriorated.
To put the above statement into perspective, Switzerland-based Sygnum and Bank Frick in Lichtenstein have confirmed that there are increasing numbers of inquiries from offshore companies seeking to open accounts with them. As you might expect, most companies are based in the United States.
Coinbase Still Eager to Embrace Global Crypto
Meanwhile, despite the current situation, Coinbase remains dedicated to its cause of ensuring global adoption of crypto. According to a company spokesperson, the company is currently evaluating geographic options. Additionally, Coinbase also met with “government officials in high-level regulatory jurisdictions.”
Mayowa is a crypto enthusiast/writer whose conversational nature is quite evident in his writing style. He strongly believes in the potential of digital assets and takes every opportunity to reiterate it. He is a reader, a researcher, a knowledgeable speaker and also a budding entrepreneur. Away from crypto, however, Mayowa’s whimsical pastimes include football or discussions of global politics.