Coinbase considers UK move as US crypto regulations remain unclear

The UK has the potential to become a crypto hub as new regulations are on their way.

Cryptocurrency exchange Coinbase has suggested that it may relocate its headquarters to the UK if the regulatory regime in the US does not improve.

Speaking at the Innovate Finance Global Summit in London, Coinbase chief executive Brian Armstrong said that anything is possible.

“We were founded in the US, and I think the US has the potential to be an important market in crypto, but right now we are not seeing the regulatory clarity that we need”, he said.

The firm’s second-largest market by revenue is the UK, but Coinbase is listed on the Nasdaq in New York and headquartered in San Francisco.

Armstrong added: “I think 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 in other regions.”

Armstrong’s remarks come after the US Securities and Exchange Commission (SEC) last month threatened to sue Coinbase over certain products.

The SEC issued a Wells notice to the exchange, which related to aspects of Coinbase’s spot market as well as its Earn, Prime and Wallet products.

The SEC also placed staking services like Coinbase’s Earn under increased scrutiny for not being registered.

Armstrong commented on the need for clarity over crypto regulations in major economies in general. He called on the UK and US to make their rules more transparent to prevent firms from developing “offshore havens”.

Armstrong also warned that the failure of the Bahamas-based FTX exchange highlighted the importance of explicit crypto regulations.

While some major economies, such as the European Union, have introduced bespoke crypto rules, the sector remains largely unregulated in the US.

At the same time, the UK has laid out its first set of crypto rules, with its financial watchdog calling for “detoxification” of the sector.

The suggestion of a Coinbase move to London will be welcome news to UK political figures keen to attract more crypto firms to the capital.

Back in February, UK ministers announced plans to turn the UK into a digital asset hub and opened a consultation period that is set to end on April 30.

The economic secretary to the UK Treasury Andrew Griffith said that the new regulations could come into force within the next 12 months, positioning the UK as a “global hub for crypto asset technology”.

Looking for your next crypto casino? Check out: Mega Dice or FortuneJack

Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

Similar News