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The firms are actively looking for new banking partners as the regulatory environment in the US has turned sour.
Top US Crypto Exchanges coinbase Currently weighing its options regarding the creation of a new crypto trading platform. according to bloomberg reportsThe platform will be based out of the United States, and Coinbase has already started talking with institutional clients about the move.
As per the report, the exchange is yet to decide on the specific location to be used for the proposed trading platform. However, the decision appears to be in line with the recent aggressive approach of US regulators towards the crypto industry.
Regulatory action tightened in America
Following several crashes in the crypto space in early 2022, scrutiny of the sector has been increased. though november The collapse of the crypto exchange FTX The regulatory actions caused it to increase manifold. It was a major situation that had a contagion effect throughout the crypto industry and beyond.
Additionally, there is also the recent failure of well-known financial institutions such as Silvergate Bank, Signature Bank, and Silicon Valley Bank, all of which were crypto backers. His sudden failure has raised even more concerns and now lawmakers may have had enough.
Interestingly, however, Coinbase is not alone in this thinking. There are many other crypto-based firms in the US that are currently looking to set up in other jurisdictions. Companies are actively looking for new banking partners as the regulatory environment in the US has deteriorated now.
To put the above statement into perspective, Switzerland-based Sygnum and Bank Frick in Liechtenstein have confirmed that there is an increasing number of requests from offshore companies to open accounts with them. As expected, most firms are located in the US.
Coinbase Still Eager for Global Crypto Adoption
In the meantime, despite the current situation, Coinbase remains dedicated to its cause of ensuring global crypto adoption. According to a company spokesperson, the firm is currently weighing geographic options. In addition, Coinbase is also meeting “with government officials in high-bar regulatory jurisdictions.”
Maiowa is a crypto enthusiast/writer whose conversational character is quite evident in his writing style. He firmly believes in the potential of digital assets and takes every opportunity to reiterate this. He is also an avid reader, a researcher, an astute speaker and a budding entrepreneur. However, away from crypto, Mayowa’s distractions include discussing soccer or world politics.