Coinbase Is Considering The Launch Of A Trading Platform Outside Of The United States
Many US crypto firms are looking to leave the country due to the United States' quickening measures against the cryptocurrency industry following the collapse of FTX and the closure of three crypto-supportive banks.
Because Bitcoin
March 17, 2023
According to sources familiar with the matter, Coinbase is in talks with its institutional clients about the possibility of launching a crypto-trading platform in a foreign country.
Bloomberg has reported that the exchange has not yet finalized a decision on the location for this trading platform. This move comes at a time when US regulators are tightening their grip on the crypto industry, as evidenced by the recent regulatory action taken against FTX, a cryptocurrency exchange that collapsed in November.
Additionally, the closure of Silvergate Bank, Signature Bank, and Silicon Valley Bank, all of which had some connection to the cryptocurrency industry, has raised concerns among lawmakers.
Coinbase is not the only U.S. cryptocurrency firm seeking alternative banking partners in foreign jurisdictions. CoinDesk has reported that Sygnum in Switzerland and Bank Frick in Lichtenstein have received numerous requests to open accounts from offshore companies, including those based in the United States.
In the pursuit of expanding global cryptocurrency adoption, a representative from Coinbase stated that the exchange is exploring various geographical options and is in discussions with government officials in jurisdictions with strict regulatory standards (Source: CoinDesk).
According to The Block's data dashboard, Binance, a giant in the cryptocurrency exchange industry, holds the largest market share in bitcoin futures. In early 2021, FTX was also a significant player in the market, with almost 25% market share at its peak. In 2020, Coinbase acquired FairX, a derivatives exchange regulated by the CFTC, and in 2021, it applied for membership in the National Futures Association, a self-regulatory organization in the United States that oversees such businesses.
When looking at the spot markets, Binance dominance vs. Coinbase over the market also becomes clear when looking at the spot trading volume for Bitcoin on CoinMarketCap:
Source: https://coinmarketcap.com/currencies/bitcoin/markets/