America’s largest crypto exchange Coinbase has received a license to operate in the offshore haven of Bermuda.
On April 19, Coinbase announced that it received a regulatory license to operate from the Bermuda Monetary Authority. The move was part of a drive to update the firm’s “global scale to go broad and deep.”
Furthermore, the new license approval comes amid a major regulatory crackdown on the crypto industry in the United States.
The firm stated that Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018. “Its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation,” it added.
Coinbase Packing Bags for Bermuda?
Coinbase said it selected Bermuda because the BMA is a highly respected and experienced financial regulator. It added that it was also a member of several international organizations, maintaining close relationships with other regulatory agencies around the world.
The move comes as U.S. financial regulators have upped the ante with their enforcement actions against crypto companies. Coinbase received a Wells notice, a warning of impending legal action, from the Securities and Exchange Commission (SEC) in late March.
Speaking at the Fintech Week in London earlier this week, CEO Brian Armstrong aired his frustrations at the current situation. Regarding a potential relocation, he said, “Anything is on the table, including relocating or whatever is necessary.”
“I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider investing more in other regions of the world.”
Furthermore, he hailed the UK for “moving fast on sensible crypto regulation.” However, Britain’s banks have other ideas and continue to impose obstructions on crypto companies.
In early March, Armstrong echoed the sentiment from the crypto sector. He warned that there would be an exodus of innovation and talent if the SEC contuses to carpet bomb the industry.
This week, Fortune reported that Coinbase plans to launch an offshore derivatives exchange in Bermuda as soon as next week.
It added that launching an offshore exchange in Bermuda would enable Coinbase to compete with Binance.
COIN Stock Outperforms BTC
Coinbase stock (COIN) has been performing well this year, even outperforming Bitcoin (BTC) so far in 2023, with a gain of 89%.
By comparison, BTC prices have increased 75% since the beginning of the year.
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