Coinbase, a leading crypto exchange platform, has recently signalled their intention to focus on various non-U.S. markets as a part of their expansion strategy. In a recent blog post, the company marked the European Union, United Kingdom, Canada, Brazil, Singapore and Australia as their “near-term priority markets”. Notably, these countries have been characterized for enacting clearer regulations related to cryptocurrencies. Coinbase expressed their motivation to focus on acquiring licenses, establishing strong operations, and registering in these markets.
According to the same blog post, it seems that the U.S. is falling behind in terms of crypto-forward regulation as the emphasis seems to be more on enforcement of existing rules and court-led regulations. The blog portrayed the U.S.’s approach as self-sidelining, potentially hindering the country’s influence over the crypto space.
The company is currently facing legal complications on its home soil. The issue is tied with a lawsuit from the Securities and Exchange Commission, accusing Coinbase of operating illegally and selling unregistered securities. These complications are a part of a larger narrative which suggests that the U.S is lagging behind in its crypto-forward regulation.
Coinbase’s new priority markets mark the second phase of its expansion plan, which has been dubbed “Go Broad, Go Deep”. The plan includes the establishment of partnerships with local and global banks to expand its fiat ramps. Coinbase also aims to ensure that its governance systems are compliant. Interestingly, Coinbase seems to be directing its lobbying energies towards Brazil, which is set to chair the G20 in 2024.
However, regulation is never a straight road. The U.S. Commodity Futures Trading Commission (CFTC) recently took regulatory action against three decentralized finance protocols for allegedly failing to ensure proper registration of their offered derivatives trading. The protocols in question have been fined and ordered to cease and desist from violating the Commodity Exchange Act and the CFTC’s regulations. DeFi platforms are expected to take proactive measures to act within the confines of the law.
Regulation, in this context, is crucial as it helps to protect consumers while also providing certainty and stability. However, over-regulation can stifle innovation and push companies to seek friendlier regulatory climates. It remains to be seen how this dynamic interplay between regulators and crypto companies will unfold and shape the future of the industry.
Source: Cointelegraph
