Coinbase considers moving offshore amid US regulatory uncertainty
Brian Armstrong, Coinbase’s CEO, and Nana Murugesan, vice president of international and business development Nana Murugesan, recently visited the United Arab Emirates to discuss strategic initiatives.
Coinbase International Exchange, a derivatives exchange, was just created in Bermuda, and therefore they are primarily concerned with obtaining additional licenses and accessibility for this venture.
By creating its first dedicated crypto regulator, straightforward laws, and robust investor and consumer protection, the United Arab Emirates (UAE) is growing its crypto and web3 story. Armstrong and Murugesan think the UAE might be a key location for Coinbase’s operations.
Coinbase International Exchange is now undergoing licensing and availability with the Abu Dhabi Global Market (ADGM) authorities. As Dubai’s Virtual Assets Regulatory Authority (VARA) develops a retail framework for virtual assets, it also seeks new licenses and collaborations.
Given the UAE’s recent surge in crypto and web3 usage, Coinbase plans to actively participate in the region’s legislative, regulatory, partner, founder, and customer communities. With over 11% cryptocurrency ownership, the United Arab Emirates has emerged as a major financial center for the Middle East, Africa, and India.
Coinbase going offshore?
Amid the murkiness of U.S. crypto legislation and a dispute with the SEC, Coinbase CEO Brian Armstrong has previously warned of intentions to relocate the company abroad.
Despite the disappointing quarterly performance, he has reaffirmed his intention to stay in the U.S. Armstrong thinks the current financial crisis has prompted some individuals to switch to cryptocurrency.
The company has filed an action against the SEC to learn more about how the SEC regulates digital assets and other securities. According to the court, the SEC must resolve Coinbase’s action within 10 days.
According to the exchange’s chief legal officer Paul Grewal, the Petition Clause safeguards citizens’ access to judicial and other government-established dispute resolution mechanisms. He requests that SEC Chair Gary Gensler reply to the charges, using the court’s precedents set in Borough of Duryea v. Guarnieri, 564 U.S. 379 (2011).
Given Coinbase’s emphasis on international growth, it’s clear that more regulation certainty at home in the U.S. would be beneficial.
The UAE is a promising market for Coinbase’s international development because of the country’s openness to blockchain technology and cryptocurrencies.
The rising demand for bitcoin trading platforms and the need for better regulatory clarity and acceptance are reflected in the crypto industry’s development in the UAE and other locations.
As the crypto sector grows and more people start using cryptocurrency, Coinbase’s smart moves in the UAE and elsewhere, Italy notably, will help spread the word.