Coinbase Potentially Looking At Launching An Overseas Exchange: Report

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The largest cryp­tocur­ren­cy exchange in the Unit­ed States may be look­ing at open­ing oper­a­tions elsewhere.

Coin­base has report­ed­ly been in talks with insti­tu­tion­al investors about open­ing up an over­seas cryp­tocur­ren­cy exchange.

Accord­ing to sources cit­ed by Bloomberg, “talks with mar­ket mak­ers and invest­ment firms touched on the pos­si­bil­i­ty of estab­lish­ing an alter­na­tive venue — away from the main Coin­base mar­ket­place — for glob­al clients.” The sources con­tin­ued to explain that the com­pa­ny has not yet decid­ed the loca­tion the plat­form might base itself out of.

Recent reg­u­la­to­ry actions have led to a turn­around in sen­ti­ment in regards to the advance­ment of the bit­coin and cryp­tocur­ren­cy indus­try in the Unit­ed States. Major exchanges have faced reg­u­la­to­ry headaches, with Krak­en set­tling for $30 mil­lion in fines in an SEC law­suit, and Coin­base owing $100 mil­lion to the state of New York after reg­u­la­tors alleged Coin­base “vio­lat­ed anti-mon­ey-laun­der­ing laws by allow­ing users to open accounts with­out con­duct­ing suf­fi­cient back­ground checks.” 

In addi­tion, the cur­rent admin­is­tra­tion has been pay­ing close atten­tion to the devel­op­ment of dig­i­tal assets in the U.S., with the White House releas­ing a “Roadmap to Mit­i­gate Cryp­tocur­ren­cies’ Risks,” in Jan­u­ary 2023. On top of that, the U.S. Trea­sury has begun its research on how it can poten­tial­ly imple­ment or adopt a CBDC, which may take the form of a pri­va­tized cur­ren­cy (like a sta­ble­coin), or, more like­ly, an adap­tion of the cur­rent sys­tem, in the form of Fed­Now.

The path that the Amer­i­can fed­er­al gov­ern­ment con­tin­u­al­ly demon­strates it wants to take is that of a reg­u­lat­ed gov­ern­ment cur­ren­cy, either the dol­lar or sim­i­lar, and not that of bit­coin. But state gov­ern­ments have shown their sup­port for sov­er­eign usage of bit­coin, includ­ing Ari­zona and Wyoming. It demon­strates that there are vary­ing opin­ions on the best path for­ward for U.S. mon­e­tary decisions. 

Seri­ous atten­tion, how­ev­er, should be paid to the cur­rent cracks show­ing in the U.S. bank­ing sys­tem, and what this could mean for the future. Build­ing on top of a mon­ey that is built to retain its val­ue, ver­sus a debased mon­ey that results from cred­it expan­sion cycles and their impacts to the bank­ing sys­tem is per­ti­nent to a pros­per­ous future. 

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