Coinbase, the largest cryptocurrency exchange in the United States, could move its headquarters to the United Kingdom amid regulatory uncertainties in its current region. Coinbase co-founder and CEO Brian Armstrong shared his thoughts about a potential move while speaking with the audience at this week's 2023 Innovate Finance Global Summit.
Despite being a publicly-listed US company, Armstrong insisted that "anything is on the table here" with regard to transferring its headquarters to the UK. Such a move would not be entirely surprising, with the UK being Coinbase's second-largest market in terms of revenue. The UK further provides greater regulatory clarity for crypto-related firms, a challenge Coinbase has had with its US operations.
"Right now, we're not seeing the regulatory clarity we need," the CEO said, alluding to an ongoing mire between Coinbase and the United States Securities and Exchange Commission (SEC). In the past few years, the SEC has enforced actions against multiple crypto projects for selling tokens that are allegedly securities. Yet, the regulatory agency has failed to provide a clear framework for industry stakeholders to determine which crypto assets qualify as securities.
The SEC sued Coinbase's competitor Kraken in February for offering crypto-staking products and is set to pursue a similar action against the San Francisco-based exchange. While Coinbase has confirmed its willingness to contest the case in court, such regulatory uncertainty makes it less competitive globally.
According to Armstrong, moving away from the US could hold the answer for Coinbase. He said, "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 elsewhere and relocating wherever is necessary."
The UK is top on Coinbase's list of possible destinations, with the Coinbase CEO also meeting Economic Secretary Andrew Griffith as part of his recent tour. Following his visit, Armstrong tweeted,
"The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK."
Notably, Coinbase is not the only US-based company considering a move to the UK due to regulatory unclarity. Popular crypto project Ripple has also hinted at such a migration in the wake of its ongoing lawsuit with the US SEC.
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