Coinjar, one of Australia’s leading cryptocurrency exchanges, is eyeing expansion into the United States market despite the contentious regulatory climate. This bold move comes at a time when many American crypto businesses are apprehensive about the government’s approach to regulation.
Coinjar CEO and co-founder Asher Tan remains optimistic about the industry, stating that regulation plays a crucial role in its development. As a company with a strong compliance track record, he believes Coinjar will be well-received within the American market. In his view, the regulatory challenges some exchanges face are opportunities for exchanges like Coinjar.
The company has already taken initial steps towards entering the US market by seeking an Anti-Money Laundering (AML) compliance officer. As licensing happens at the state level in America, the company plans to gradually add states until they achieve near-complete coverage.
Of course, the ambitious endeavor comes with its own set of challenges. Coinjar may find itself up against stiff competition from established players in the US crypto trading scene, such as Coinbase. Founded in late 2013, Coinjar has headquarters in Melbourne and became one of the pioneers in the Australian market. In September 2021, the company gained authorization to operate in the United Kingdom. Currently, it has around half a million users across both nations.
Meanwhile, the US regulatory landscape is becoming increasingly heated, with some exchanges opting to exit the market. A prime example of this is the ongoing saga between Coinbase and the Securities and Exchange Commission (SEC). On March 22, the SEC issued a Wells notice to Coinbase, threatening legal action over the company’s offerings, which allegedly violate securities law. Coinbase, in response, has filed a petition with a federal court, urging the SEC to provide clearer regulatory guidelines for the crypto industry.
The success of Coinjar’s US venture will depend on how the exchange navigates the rough waters of this evolving regulatory environment. Furthermore, the outcome of the ongoing disputes between existing US crypto businesses and regulatory bodies may well have a lasting impact on the country’s crypto market as a whole.
In summary, Coinjar’s entry into the US market signals the ambition and optimism of a forward-looking company, even in the face of growing regulatory scrutiny. It remains to be seen how the exchange will fare amidst the challenging US crypto landscape, as they compete with established players and continue their mission to make cryptocurrencies more accessible and useful for all.