Coinbase CEO: Crypto Will Go Offshore Unless US Changes Its Regulatory Stance

Brian Armstrong

Armstrong hinted that Coinbase could move to another country if there is no clear cryptocurrency legislation in the United States.

Brian Armstrong, CEO of Coinbase, believes that US and UK-based cryptocurrency entities could move to other countries if national watchdogs do not apply proper legislation to the sector.

He has also hinted that his stock could consider such a move if the regulatory situation in the United States remains the same.

everything is on the table

According to Armstrong, the US and UK authorities should apply adequate cryptocurrency rules to prevent the flight of local companies to other destinations:

“This is why we need clarity on onshore legislation and regulation because if the UK doesn’t have this if the US doesn’t have this, these companies are going to be built-in tax havens.”

The CEO believes that the infamous FTX crash in November last year highlighted the importance of cryptocurrency regulations.

He highlighted that the UK has already started to work in that direction, praising its efforts to “advance rapidly on sensible regulation of cryptocurrencies to boost both economic growth and consumer protection.”

Asked if Coinbase could move to another country, Armstrong said that “everything is on the table, including relocation or whatever it takes.” Although he believes that the US could be a key market for the crypto industry, the current regulatory uncertainty spurs that potential:

“I think in a few years, if we don’t see that regulatory clarity emerges in the US, we may have to consider investing more in other parts of the world.”

Coinbase’s problems in the US

The US SEC launched an investigation last year, suspecting that some of the cryptocurrencies listed on the platform are unregistered securities.

The Commission struck again in March of this year, issuing a Wells notice against Coinbase. The possible enforcement action could be related to the exchange’s Earn, Prime and Wallet products. Armstrong remained unfazed by the SEC’s accusations:

“While we understand that this is all part of the journey towards reforming our financial system, we are right in law, trust the facts, and welcome the opportunity for Coinbase (and by extension the broader crypto community) to come before a court.”

Coinbase is not the only US crypto company in a dispute with the SEC. The latter probed Kraken in February of this year for a possible violation of the rules by offering securities as betting services to US users.

The platform terminated those offers and paid $30 million in restitution, late-payment interest, and civil penalties.