Aussie Crypto Exchange Starts US Expansion Despite ‘Regulatory Risk’
Australian crypto exchange Coinjar is trying to put its boots on the ground in the US, with its CEO apparently unfazed by the market’s “regulatory risks”.
In an interview with The Australian on May 1, Coinjar CEO and co-founder Asher Tan said he saw the opportunity despite a recent wave of US crypto firms ringing alarm bells over the government’s approach to regulation.
“Where other exchanges see regulatory risk, we see opportunity,” he said, adding:
“We’ve always understood that regulation has a key role to play in crypto’s future, and we believe the US market will reward an exchange with our outstanding compliance bona fides.”
Coinjar is based in Melbourne and was founded in late 2013. It was one of the earliest exchanges to enter the market in Australia and also secured a license to operate in the UK in September 2021. It is reported to have around 500,000 customers over whole two countries.
Coinjar kicked off its US expansion plans in May by listing a single open role for an anti-money laundering (AML) officer.
“CoinJar is expanding into the US and we are seeking an AML Compliance Officer. The successful candidate will report to the Head of Legal & Compliance and the Board of Directors, take ownership of applicable programs and policies, including the AML/OFAC program, and implement processes to ensure compliance of them”, says the job list.
Tan suggested that Coinjar’s focus on regulatory compliance will be key to thriving in a difficult environment like the US.
“Licensing is done at the state level in the United States, so we will gradually add states until we can get close to full coverage of states,” he said, adding that “while not all companies are able or willing to satisfy these criteria, CoinJar believes we are well suited to take on this challenge.”
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While the idea sounds great in theory, US exchanges like Coinbase provide an example of potential roadblocks Coinjar could face.
Coinbase has claimed on several occasions that it has actively sought to engage in dialogue with the Securities and Exchange Commission (SEC) in accordance with compliance, but has ultimately had these efforts thrown back in its face.
The SEC issued Coinbase a notice from Wells on March 22, essentially threatening legal action over some of the firm’s offerings, which it claims violate securities laws. However, Coinbase has claimed that it already disclosed such an offering to the SEC before it was given the go-ahead to go public.
In response, Coinbase has since filed a petition in federal court asking the SEC to propose and adopt clearer regulatory guidelines for the cryptocurrency industry in the United States
“We’re literally sitting up here on stage asking for regulation, asking for rules, asking for a framework that makes sense for our particular technology so that we can be registered,” Coinbase Chief Legal Officer Paul Grewal said at Consensus 2023 on March 27. April.
Magazine: Crypto Regulation — Does SEC Chairman Gary Gensler Have the Last Word?
