Coinbase CEO: Crypto firms can move offshore

Unclear rules have driven cryptocurrency firms to move offshore, says Coinbase’s CEO.

And his company may eventually become one of them.

Speaking at an industry conference on Tuesday (April 18), Brian Armstrong said last year’s collapse of Bahamas-based crypto company FTX underscores the need for the US and UK to come up with clear guidelines for the industry.

“This is why we need clarity on onshore legislation and regulation, because if the UK doesn’t have this, if the US doesn’t have this, these firms are going to be built in offshore ports,” said Armstrong, whose comments at Innovate Finance was reported by Reuters.

A separate report from Coindesk notes that Armstrong also said that Coinbase could pull up stakes.

“Everything is on the table, including relocation or whatever is necessary,” he said when former British chancellor George Osbourne asked if Armstrong could see Coinbase leaving the U.S.

“I think the US has the potential to be an important market for crypto, but right now we don’t see the regulatory clarity we need,” he said. “I think if we don’t see regulatory clarity emerge in the US for a number of years, we may have to consider investing more elsewhere in the world.”

Last month, it was reported that Coinbase was considering building a marketplace outside the US

Days later, the company became the second crypto firm in the United States to receive a Wells notice from the US Securities and Exchange Commission (SEC) related to Coinbase’s list of potential unregistered securities across its suite of digital asset products and services.

“Based on discussions with staff, the company believes these potential enforcement actions will be related to aspects of the company’s spot market, staking service Coinbase Earn, Coinbase Prime and Coinbase Wallet,” Coinbase said in a statement.

As PYMNTS wrote shortly after this, actions by the federal government have come to look like Washington is “trying to put the crypto sector to bed.”

The background to this statement was a report by the White House Council of Economic Advisers that devotes a 35-page chapter to reviewing why use cases of blockchain-based digital assets have not lived up to their promises, and going over the risks they pose to both consumers and the US financial system .

“The picture painted is dim, and industry observers believe it could signal a shift in the Biden administration’s approach to the crypto sector from neutral to negative,” PYMNTS wrote.