Coinbase, one of the largest cryptocurrency exchanges in the world, has been carefully navigating the uncertain waters of international expansion amidst the ongoing regulatory challenges faced in the United States. The exchange’s CEO, Brian Armstrong, has maintained that while Coinbase will not be leaving the US entirely, it is actively exploring opportunities to expand its operations overseas.
Compared to their European counterparts, US regulators have been slower to adopt crypto-friendly legislation, prompting industry participants, such as Coinbase, to seek friendlier jurisdictions that have already put in place comprehensive regulatory frameworks. Notably, Armstrong has praised the European Union and the United Kingdom for their “thoughtful” and “comprehensive” approach to crypto regulation.
Coinbase’s international moves are primarily focused on securing strategic partnerships, acquiring licenses, and launching new products in various countries. A prime example is their recent partnership with Austrian-based Bitpanda, which enables Coinbase to use Bitpanda’s investing-as-a-service (IAAS) for foreign institutional clients. In return, Coinbase will be added to Bitpanda’s liquidity providers.
Furthermore, with the recent launch of Coinbase One in 34 countries, including the UK, Germany, and Ireland, users will gain access to 24/7 customer support, zero trading charges, and up to $1 million in account protections. An additional 31 countries are expected to join the platform in the coming months.
The launch of the Coinbase International Exchange, an offshore crypto derivatives platform, further demonstrates their appetite for international expansion. Initially, the Bermuda-based exchange will list Bitcoin (BTC) and Ether (ETH) perpetual futures for institutional investors and traders outside the US.
In addition to Bermuda, where Coinbase has obtained a Class F license from the Bermuda Monetary Authority, the exchange has confirmed plans to operate in Abu Dhabi, diversify its offerings in Brazil, and remain present in Canada despite new regulations causing competitors, such as Binance, to exit the market.
Coinbase’s aggressive global expansion illustrates the need for US regulators to catch up and adopt a more proactive approach towards crypto regulation. Otherwise, the country risks losing its competitive edge and driving crypto innovation elsewhere. On the other hand, some critics argue that moving too fast in adopting a regulatory framework can lead to an overly restrictive environment, stifling innovation and limiting growth opportunities. In essence, striking a balance between encouraging innovation and ensuring safety for market participants remains paramount to paving the way forward for the cryptocurrency industry.
Source: Blockworks
