Coinjar, an Australian crypto exchange, is confident in expanding its operations in the United States despite concerns about regulatory risk. In a recent interview with The Australian, CEO and co-founder Asher Tan claimed that “where other exchanges see regulatory risk, we see opportunity.” He believes that strict regulation has a vital role to play in the future of cryptocurrency and that markets like the US will reward compliant exchanges.
Coinjar was established in 2013 in Melbourne, Australia, and obtained a license to operate in the United Kingdom in September 2021. It currently has around 500,000 customers in Australia and the UK combined. Tan suggested that their compliance-focused approach would help them succeed in a challenging environment like the US.
One of Coinjar’s initial steps to expand in the US was listing an open role for an anti-money laundering (AML) compliance officer in May. The role is expected to involve taking ownership of relevant programs and policies, including the AML/OFAC Program, and ensuring that the company adheres to them.
Tan envisions gradual expansion in the US, with state-by-state licensing to achieve close to full coverage. While some companies might not meet this stringent criteria, Tan believes that Coinjar is well-suited for the challenge.
However, the experience of Coinbase, a US-based cryptocurrency exchange, raises questions about the roadblocks Coinjar may face. Coinbase claims to have actively sought dialogues with the Securities and Exchange Commission (SEC) to ensure compliance but faced criticism and potential legal action over its offerings.
Coinbase responded by filing a petition in federal court for clearer regulatory guidelines for the cryptocurrency industry. Coinbase’s Chief Legal Officer, Paul Grewal, has expressed that the company wants clear regulations and a framework tailored to their technology.
Although CoinJar aims to navigate the complex regulatory environment in the US, the experience of other exchanges, like Coinbase, shows the potential difficulties they might encounter. Regulatory clarity is crucial for the growth and development of the cryptocurrency market in the US, and exchanges like Coinbase and CoinJar are keen to see regulators develop frameworks that accommodate the innovative technology.
In conclusion, CoinJar’s intentions to expand into the US market amid regulatory uncertainties demonstrate their commitment to compliance and belief in the importance of regulation for the industry’s future. However, the experiences of other exchanges such as Coinbase stress the need for comprehensive and appropriate regulatory frameworks that cater to the unique qualities of the cryptocurrency space.