• Coinbase CEO Brian Armstrong has revealed that the crypto exchange could relocate its headquarters from the US due to regulatory uncertainty.
• Armstrong praised the regulatory efforts in the UK, highlighting the fact that only one regulatory agency is tasked with handling securities and commodities.
• The comments come after Coinbase was issued a Wells Notice by the US SEC.
Coinbase Could Relocate From The US
Coinbase’s CEO Brian Armstrong has revealed that the cryptocurrency exchange would consider relocating its headquarters from the United States if there is no regulatory clarity in the country. This came while speaking at Fintech Week in London, where former U.K. Chancellor George Osbourne asked whether he could see Coinbase leaving the US. Armstrong said “Anything is on the table, including relocating or whatever is necessary” as he believes that without regulatory clarity, Coinbase may have to invest more elsewhere in the world in a number of years.
Regulatory Environment In The US Is Unclear
Armstrong mentioned that due to jurisdictional differences between different agencies in charge of regulating securities and commodities such as Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), it makes it difficult for businesses to operate as they often get contradictory statements from both agencies every few weeks. He emphasized his desire for a clear rulebook so businesses can operate smoothly without worrying about their legal status or facing government charges over certain issues like cryptocurrency taxation.
UK Has A Clearer Regulatory Atmosphere
Armstrong praised efforts made by Financial Conduct Authority (FCA) which is solely responsible for regulating securities and commodities, unlike in USA where CFTC regulates commodities while SEC regulates securities separately meaning any business operating must be aware of both regulations or else face consequences.
Coinbase Received A Wells Notice From The SEC
The comments come shortly after Coinbase received a Wells Notice from United States SEC warning them of potential enforcement action against them following an investigation into whether they had violated federal securities law when listing digital assets on their platform since 2013-2015 period by trading digital assets which should have been registered with SEC but were not registered at all during this period due to unclear rules related to virtual currencies and how they are treated legally when being traded on exchanges like Coinbase.
Conclusion
As such, it appears that regulation remains an important factor when it comes to investing into cryptocurrencies as despite having many potentials and opportunities presented by blockchain technology underlying them, investors still need assurance that their investments are safe especially if authorities like SEC step into action whenever something goes wrong or some kind of violation occurs resulting in loss of investor funds due to lack of legal protection provided by governments or regulatory bodies so far making it important for those interested getting involved with cryptocurrency market understand risks associated with them before diving right into investment pool without proper research or having proper knowledge regarding these assets class before investing capital into them.
