Digital asset exchange Coinbase has revealed its ambitions of global expansion, signaling an emphasis on jurisdictions outside the United States deemed as “near-term priority markets.” The company pinpointed constraining regulations in the US markets as a significant obstacle causing an egress of both investors and creators.
Coinbase’s international business vice-presidents Nana Murugesan and Tom Duff Gordon outlined the growth initiatives that will focus on Canada, the United Kingdom, Australia, Brazil, Singapore, and the European Union. The executives drew attention to the progressive regulations on digital assets in these countries, while the United States stands as an outlier.
While the world is observing leaps forward in crypto-friendly regulations, the United States takes a more traditional approach such as enforced rule following and legal-based regulation. To deepen their market reach and drive products in these emerging markets, Coinbase’s plan will involve executing licenses, registrations, and launching new operations.
Included in the rollout is the vision for their initiative “Go broad, Go deep.” As part of this strategy, the exchange seeks to extend its “Go Broad” products working in tandem with “forward-thinking regulators.” Integral to these plans are the International Exchange, set in motion under the Bermuda Monetary Authority’s supervision, and Coinbase Wallet which aspires to fortify the safety and versatility of web3 on a global scale.
Coinbase also disclosed intentions for a cooperative partnership with banks and payment service providers for a smoother transactional experience and an expansion of its derivatives market. Compliance with the laws of each target country and cultivating local community engagement are listed among the approved steps for the expansion procedure.
However, the regulatory landscape paints a different picture in the United States. The American Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have frequently clashed with digital asset firms, instigating legal actions that have garnered the reputation of US regulators as “hostile.”
But Coinbase isn’t fazed by this atmosphere. In fact, it further stated that 83% of G20 members and the European Union are forging ahead towards clear regulatory insight. Europe, with its burgeoning blockchain opportunities and almost level playing field with the US in terms of developer roles, is seen by the exchange as a ripe market.
While the US regulatory hurdles pose a challenge, interesting times lie ahead for crypto businesses betting on global markets. Coinbase’s commitment to Brazil might soon be rewarded as the country is set to assume G20 leadership by December 2023. It’s a waiting game, but the high stakes might just pay off.
Source: Cryptonews
