According to a Bloomberg report, Coinbase is exploring the option of setting up a crypto trading platform outside the United States of America as part of an aggressive expansion campaign.
As of now, there is no clarity on where the new entity will be based.
A New Crypto Trading Platform
According to the report, Coinbase has already discussed setting up a platform based outside the US, where it has its current headquarters, with some of its institutional clients, market makers, and investment firms. However, there is no clarity about the nature of Coinbase’s overseas operations or where it would be based. Coinbase, apart from its headquarters in the United States, has a strong presence in Spain, Italy, France, the United Kingdom, Ireland, Switzerland, and the Netherlands.
Along with the authorization to operate in the United States, Coinbase holds licenses to operate in Italy, Germany, Ireland, and the Netherlands, along with the UK Financial Conduct Authority. The exchange is also in the middle of procuring additional registrations and licenses in other major markets to comply with local regulations.
Move To Drive Growth?
There is considerable speculation about why Coinbase is looking to international markets. Some believe that the exchange is moving and expanding internationally to keep pace with its rivals, some of whom have gained considerable traction in international markets. Coinbase is currently the largest cryptocurrency exchange in the United States but is facing strong competition from the likes of Binance in the global markets.
Earlier this month, Coinbase announced that it had updated its retail platform in Singapore as a result of a strategic partnership with Standard Chartered bank. The partnership with the bank would allow Coinbase customers to move funds to and from their accounts via local banks. As a result of the partnership, Coinbase customers based in Singapore can cash in or cash out of their exchange accounts using local bank transfers for free, allowing customers to gain more control and flexibility over their assets. Before the partnership, Coinbase customers were forced to use debit or credit cards to transact with the exchange.
The CEO of Coinbase Singapore, and its regional director, Hassan Ahmed, stated,
“Southeast Asia is a crypto-forward region with a lot of demand for holding and using crypto in markets such as the Philippines and Indonesia, as well as a hotbed of innovation for trends like Web3 gaming such as Vietnam”.
Or Is Regulatory Scrutiny The Reason?
However, there is also speculation that the move was forced on Coinbase as regulatory authorities in the US looked to clamp down on the crypto firms for their perceived role in the ongoing banking crisis. Recently, three major banks in the United States, Silicon Valley Bank, Silvergate Bank, and Signature Bank, failed, leaving a huge impact on depositors.
In recent months, regulators, including the Securities and Exchange Commission (SEC), have come down hard on crypto firms for staking services offered in the US. Coinbase also faces banking troubles after it emerged that around $240 million in corporate cash balances are stuck with Signature Bank. Despite the clampdown, Coinbase, in a communication with users, stated that its staking program would continue.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: CryptoDaily.co.uk
Original Post: Coinbase Plans To Set Up Crypto Trading Platform Outside The US
