Coinbase Could Relocate if US Lacks Regulatory Clarity: CEO
• Coinbase’s CEO, Brian Armstrong, revealed that the crypto exchange could relocate its headquarters from the United States if there is no regulatory clarity.
• Armstrong praised the regulatory efforts in the U.K., highlighting the FCA as the only regulatory agency tasked with handling securities and commodities.
• This comes a month after Coinbase received a Wells Notice from the SEC warning Coinbase of potential violations of federal securities laws.
Coinbase Could Relocate From US
Coinbase’s CEO Brian Armstrong has revealed that the cryptocurrency exchange would consider relocating its headquarters from the United States if there is no regulatory clarity in the country. He mentioned this while speaking at Fintech Week in London to former U.K. Chancellor George Osbourne who asked whether he could see Coinbase leaving the US. Armstrong said that „Anything is on the table, including relocating or whatever is necessary.“
Regulatory Uncertainty In The US
Armstrong highlighted how regulatory environment in the US remains unclear at the moment and this is affecting crypto ecosystem there as it leads to contradictory statements from heads of CFTC and SEC coming out almost every few weeks resulting in an uncertain environment for businesses to operate in. He expressed his desire for a clear rulebook from regulators which will provide much needed clarity on regulations related to crypto space.
Regulatory Efforts In The UK
The CEO praised efforts by UK regulators mentioning Financial Conduct Authority (FCA) being responsible for handling both securities and commodities regulation compared to US where Commodity Futures Trading Commission (CFTC) handles commodities, while Securities and Exchange Commission (SEC) regulates securities separately leading to turf battle between two entities over cryptos oversight role.
Received Well Notice From SEC
This revelation made by Armstrong comes almost a month after Coinbase receiving a Wells Notice from SEC warning them of potential violations of federal securities laws without any further details provided on what exactly violated those laws or why they were issued such notice by regulators in first place.
Conclusion
Overall, it appears that until there is some kind of clear regulations provided by US regulators regarding cryptocurrencies, exchanges such as Coinbase may have no other option but to look towards other locations offering more certainty around their operations which can be beneficial for their long-term success and growth prospects .