According to Coinbase (COIN:NASDAQ) CEO Brian Armstrong, if the United States continues with its negative regulatory approach towards Bitcoin (BTC) and cryptocurrencies, the company is exploring the possibility of moving its headquarters outside of the country.
During a fintech conference in London on Tuesday, former UK Chancellor of the Exchequer George Osborne asked if San Francisco-based Coinbase would consider moving to Britain. Armstrong replied: “Anything is on the table, including relocating or whatever is necessary.”
During the month of March, it came to light that Coinbase had initiated discussions with investors and other concerned entities regarding the possibility of launching an overseas exchange. Recognized as the foremost cryptocurrency and Bitcoin exchange in the U.S. in terms of trading volume, Coinbase has been grappling with mounting regulatory constraints.
In fact, Coinbase had to pay $100 million in fines as regulatory findings stated that the exchange had a heightened risk of illegal activity. Moreover, the company may be facing SEC charges for possible violations of securities laws. Coinbase has expressed its concerns about regulatory uncertainty in blog posts, noting that around 1 million tech jobs in the US are at stake.
While, some states in the U.S. are working towards safeguarding Bitcoin and mining rights, others are pushing for more regulations and laws to be put in place.
It should be noted that Coinbase is not the only major crypto exchange to face penalties and scrutiny. Other top exchanges in the cryptocurrency industry have also faced penalties. Binance, which is the largest exchange by volume worldwide, and its CEO Changpeng Zhao were recently sued by the CFTC for alleged regulatory transgressions. Kraken, an American exchange, recently settled with the SEC for failing to register its staking product.
As the industry expands and becomes larger, businesses hoping to profit from the lucrative American market will likely face more strict regulations and close attention from authorities in the United States. Tough decisions will have to be made in order to comply with these regulations.
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