Due to uncertainty and lack of regulations in the U.S. market, the leading digital currency exchange platform, Coinbase, is considering moving to the U.K. Coinbase expresses its affinity for the U.K., defining it as a “Global Crypto Hub.”
There is no doubt that Brian Armstrong is one of the most prominent figures in the crypto industry, having co-founded Coinbase in 2012 and helped grow it into one of the largest and most well-known exchanges in the world. Under his leadership, Coinbase has expanded its offerings beyond just Bitcoin to include a wide range of cryptocurrencies and services, such as a debit card that allows users to spend their crypto like cash.
Armstrong has also been vocal about his belief in the potential of cryptocurrencies to revolutionise finance and bring economic freedom to people worldwide. Increased onboarding of institutional customers and successful Q4 results indicate that Coinbase is performing well in the bearish crypto market, with their stock up more than 90% since the start of the year.
However, uncertainty regarding regulations by the SEC has led the CEO to look for an international expansion to the European markets, especially the United Kingdom. In an interview with CNBC, Armstrong expressed his beliefs that the E.U. and the U.K. have taken the proper steps toward crypto legislation. He also stated several reasons why he supposes an expansion to the U.K. may be a reasonable decision for the multi-billion dollar company.
Coinbase’s plans to expand to the U.K. market
Regarding Europe’s legislation, the leader of Coinbase stated: “We are actually seeing really good regulatory clarity in Europe with the MiCA legislation.” The CEO also acknowledges that U.K. authorities are taking action toward stablecoin bills. Armstrong thinks that regulatory clarity is necessary for the world to see growth in the crypto industry.
“We are looking at other markets. I think the U.K. is actually a very good one for us, as it’s the first country we went into out of the U.S., our second highest revenue country. In the U.K., we have seen really great leadership from everyone from the PM to the city minister, kind of talking about how they want crypto to be based here in the U.K., they want it to be a web 3.0 hub, that is really attractive to us.” said Brian Armstrong. These are the main reasons Coinbase will presumably invest more in the United Kingdom’s future.
Coinbase also pinpoints nine principles and areas where the U.K. government can improve its movement toward mass crypto adoption. The main ones include prioritising a comprehensive blockchain and Web3 strategy across the government, incorporating digital assets as a central element for the city to maintain its leadership, and ensuring that the U.K. banking sector promotes responsible innovation in crypto assets.
Overall, Coinbase’s team believes that by implementing these fundamental points, the U.K. government will have the chance to establish itself as a leader in the blockchain and Web3 industry, which can lead to significant economic benefits for the country. The world’s leading digital currency exchange platform is “committed to working closely with policymakers” to contribute to a better and more decentralised financial future.
How has the SEC influenced Coinbase’s business?
Following the Wells notice issued by the U.S. Securities and Exchange Commission (SEC), Brian Armstrong has voiced his concerns about the need for improved crypto regulations in the country. Armstrong highlighted the importance of passing a clear stablecoin bill, comprehensive legislation around centralised actors, and clarifying what constitutes a commodity and security. With these issues addressed, Coinbase and other cryptocurrency exchanges can better apply best practices from traditional financial services and operate with more certainty and transparency.
Due to a lack of clarity from the SEC’s side, the two sides may, in fact, end up going to court. According to Brian Armstrong, the company seems well prepared, and they are “going to court to win.”
