Coinbase Turns To Europe Amid Clampdown By US Regulators
The founder of Coinbase has hinted that the cryptocurrency exchange may relocate from the United States to the United Kingdom in order to take advantage of the country’s more accommodating regulatory atmosphere.
Brian Armstrong, CEO of Coinbase, tweeted that he had a “great meeting” with Andrew Griffiths, UK Economic Secretary to the Treasury.
Coinbase May Leave The US Due To Regulatory Restrictions
Armstrong has warned that Coinbase, which has 110 million users, may leave the US if the country does not establish a regulated framework for cryptocurrencies.
Great meeting today with UK Economic Secretary and City Minister @griffitha.
The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe
— Brian Armstrong (@brian_armstrong) April 17, 2023
The Coinbase big boss told Griffiths about two topics they addressed. Concerning the latter, Armstrong said that the Finance Promotion guidelines are bad for “real world use cases, formation of capital markets, and consumers.”
Coinbase CEO Brian Armstrong. (Image: Doc. Coinmood)
Armstrong noted that the discussion at the conference centered on the need for reasonable regulation of the cryptocurrency business to safeguard investors and promote economic growth. The crypto exchange top honcho cited Europe’s head start, noting that the region’s Markets in Crypto-Assets (MiCA) regulation will go into effect later this year.
In a blog post, Coinbase stated:
“In short, things are happening in Europe that are edging the region ahead and, when it comes to embracing the digital economy, the region is preparing for a seismic change in how it uses and thinks about money.”
UK’s Attractive Regulatory System
Griffith, on the other hand, is said to have resurrected the Asset Management Task Force. According to reports, the organization will investigate, among other things, how to implement blockchain technology throughout the fund management industry.
At today’s Innovate Finance Global Summit, Armstrong discussed how the UK’s regulatory system may make it more attractive than the company’s native country of the US with former chancellor George Osborne.
Armstrong has complained about the lack of direction from US regulators, who he claims are taking a different approach to regulation than he would prefer.
Armstrong praised the United Kingdom’s approach to regulation and its positive outlook on emerging technologies and cryptocurrencies.
“Overall, I would give the UK really high marks […] we’ve seen really incredible leadership from people like Rishi Sunak continuing to message that science and technology is important in this country.”
Crypto total market cap nearly unchanged at $1.23 trillion on the daily chart at TradingView.com
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Armstrong noted that the US has a “turf battle” between two distinct authorities who have made public contradicting comments, whereas the UK’s Financial Conduct Authority (FCA) controls both commodities and securities.
The CEO explained that cryptocurrency is a key component of this, and that he hopes the UK will become “a financial hub.”
Armstrong is in London from the 17th through the 21st to talk at UK FinTech Week, held at the Guildhall in the City of London.
-Featured image from GlobalCapital
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