According to a March 17 Bloomberg report, the exchange is looking to expand outside the United States. To this moment, Coinbase has not commented directly on the news.
Obviously, after the FTX fiasco, Silvergate, and the whole Silicon Valley bank collapse, the SEC and several U.S. lawmakers are increasingly tightening up regulations.
Basically, they are clamping down on Crypto-friendly banks for their perceived roles in the recent incidents that hit the space… Even Kraken was criticized over its U.S. staking services.
This means that Coinbase no longer has any banking partners in the area. So it would need to expand and relocate outside of the U.S. to find abled support.
Coinbase Expands To Foreign Countries
This is in line with the exchange’s “Go Broad, Go Deep” strategy, revealed earlier this month in an official blog, which includes growing the company’s presence on every continent except for Antarctica.
So, if Coinbase does expand, this is an exciting prospect.
Why? It could potentially put the exchange head to head with international rival Binance, which generates roughly 10x more volume per day.
In detail, Coinbase is considering setting up a Crypto-trading platform overseas, and they are discussing this with institutional clients.
These Clients are NOT your average joes, these are investors with TONS of money. So if Coinbase leaves, all the institutional money goes along with them.
Although the final decision has not been made yet, all the data veers us in that direction.
What does the Coinbase expansion mean for the U.S.?
Without a doubt, the new Coinbase venture would service global clients!
Unfortunately, if Coinbase expands into foreign lands, this will not have a good impact on the United States.
Basically, the country will stand to lose some of its technological superiority on the map.
And what the Congressmen are also disregarding is that this expansion plan means losing American money to foreign countries.
Not to mention the jobs and positions will be taken from the citizens in favor of others in the would-be new location. They are basically driving business away from the country!
Reportedly, not only Coinbase is considering expanding! Several other U.S. crypto firms are looking to find new banking partners in other jurisdictions.
For example, both Sygnum bank in Switzerland and Bank Frick in Lichtenstein received an increasing number of requests to open accounts from offshore companies, including those based in the U.S.
So, how do you think this saga will end?