Coinbase, one of the leading cryptocurrency exchanges, may consider moving its headquarters out of the United States if the government fails to provide clear regulatory guidelines, according to CEO, Brian Armstrong.
This statement was made at Fintech Week in London after the former U.K. Chancellor George Osbourne asked whether he might see Coinbase leaving the United States. Amstrong responded, saying that the possibility of moving out of the United States or doing whatever else is required is on the table.
“I think the U.S. has the potential to be an important market for crypto, but right now we are not seeing that regulatory clarity that we need,” he said.”I think in a number of years if we don’t see that regulatory clarity emerges in the U.S. we may have to consider investing more elsewhere in the world.”
Armstrong vented his irritation in a series of tweets over the murky regulatory environment around the cryptocurrency sector, noting that his company had been working with regulators for years but that the lack of progress was concerning.
Armstrong stated that the lack of clear regulatory requirements had put the company at a competitive disadvantage with other cryptocurrency exchanges. Other countries, he observed, had been successful in attracting more crypto-related enterprises due to their clearer regulatory environment.
“We literally have contradictory pronouncements from the CFTC and SEC chiefs virtually every few weeks – how can a firm thrive in that environment? We simply want a set of rules.” Armstrong said.
Armstrong’s comments come at a time when the US government is stepping up its scrutiny of the cryptocurrency industry. The Securities and Exchange Commission (SEC) recently announced that it would be reviewing Coinbase’s proposed lending program, which the company says is not a security. The company had earlier noted plans to move some of its business overseas owing to the same difficult regulatory environment in the United States.
With a market valuation of more than $60 billion, Coinbase is one of the world’s most successful cryptocurrency exchanges.
Whether Coinbase will really relocate its corporate headquarters outside of the United States is still up in the air. Yet Armstrong’s remarks make it apparent that to foster innovation and industrial expansion, the government must offer more precise regulations on the regulation of cryptocurrencies.
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