Coinbase, America’s largest crypto exchange, has been granted a license to operate in the offshore haven of Bermuda.
On April 19, Coinbase announced that it had obtained a regulatory license to operate from the Bermuda Monetary Authority. The move was part of a drive to modernize the company’s “global reach broad and deep.”
Moreover, the approval of the new license comes amid a major regulatory crackdown on the crypto industry in the United States.
The company stated that Bermuda was one of the first financial centers to pass a comprehensive digital asset regulation in 2018. “Its regulatory environment has long been known for its high level of scrupulousness, transparency, compliance and collaboration.” added.
Coinbase packing bags for Bermuda?
Coinbase said it chose Bermuda because the BMA is a highly respected and experienced regulator. He added that he has also been a member of several international organizations, and maintains close relationships with other regulatory agencies around the world.
The move comes as US financial regulators have upped the ante with their enforcement action against crypto firms. Coinbase received a Wells Notice, a warning of impending legal action, from the Securities and Exchange Commission (SEC) in late March.
Speaking at Fintech Week in London earlier this week, CEO Brian Armstrong expressed his frustration with the current situation. Regarding a possible transfer, it is He said“Anything is on the table, including moving or whatever is necessary.”
“I think if there are several years where we don’t see regulatory clarity emerging in the US, we may have to consider increasing investment in other regions of the world.”
Moreover, he commended the UK for “moving quickly on sensible crypto regulation”. However, British banks have other ideas and continue to put a damper on cryptocurrency companies.
In early March, Armstrong reiterated sentiments in the cryptocurrency sector. He warned that there would be an exodus of innovation and talent if the SEC continued to blow up the industry.
This week, Fortune reported that Coinbase plans to launch an offshore derivatives exchange in Bermuda as soon as next week.
He. She added The launch of an offshore exchange in Bermuda will enable Coinbase to compete with Binance.
COIN stock is outperforming BTC
Coinbase (COIN) stock has done so well this year, even outperforming Bitcoin (BTC) so far in 2023, with a gain of 89%.
In comparison, bitcoin prices are up 75% since the start of the year.
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