• Coinbase has reportedly explored the possibility of setting up a cryptocurrency trading platform in a jurisdiction outside US regulatory reach.
• This move could expand Coinbase’s offerings to a global client base beyond its existing marketplace, and diversify its risks in case of any US regulatory challenges.
• Establishing a crypto-trading platform outside of the US could provide Coinbase access to new markets and increased liquidity for institutional clients.
Coinbase Explores Establishing Cryptocurrency Trading Platform Outside U.S.
According to a recent report by Bloomberg, Coinbase has explored the possibility of setting up a cryptocurrency trading platform in a jurisdiction outside United States agencies’ regulatory reach.
The Impact Of Increasing Regulatory Scrutiny
With increasing regulatory scrutiny and crypto-friendly banks shutting down operations less than a month apart, the climate for crypto platforms in the US has been worsening. In response to this crackdown against the industry, the largest crypto exchange in the US has taken steps to mitigate the impact on its operations.
Benefits Of Setting Up Exchange Outside The U.S.
Establishing a crypto-trading platform in a jurisdiction outside of the US regulatory sphere could offer Coinbase access to new markets. This move could expand Coinbase’s reach and allow them to tap into previously inaccessible markets. Additionally, this move could increase the exchange’s liquidity for its institutional clients, providing them with more trading options as well as diversifying risks in case of any future US regulatory challenges.
Potential Locations For Crypto Trading Platform
Although establishing a platform overseas could provide Coinbase with greater regulatory flexibility, the exchange will still need to find an appropriate location that is conducive for launching such services legally and securely while also offering attractive tax benefits. Some potential locations include Japan or Singapore – both countries have made significant strides towards creating favorable conditions for businesses operating within their jurisdictions related to cryptocurrencies and blockchain technology innovation projects.
Establishing an offshore crypto-trading platform may be one way for Coinbase to mitigate some of its risk from increasing regulation within the United States while also expanding its offerings beyond its current marketplace by tapping into new markets globally; however, it is important that they choose an appropriate location that is suitable for launching such services legally and securely while also offering attractive tax benefits if they wish to take advantage of this opportunity successfully