Coinbase expands to Bermuda – The most popular crypto exchange in the U.S. Coinbase has announced its offshore expansion to Bermuda. While the crypto regulators in the United States continue to remain unfriendly, exchanges are beginning to seek for “safe haven” offshore.
Crypto Law founder, John Deaton argues that the scrutiny is pushing crypto firms away from the country. Coinbase is the latest exchange to sort after more crypto-friendly jurisdictions.
Bermuda is one of the countries to issue a broad and more transparent crypto legal framework. Coinbase has taken advantage of this and obtained a license to operate in the territory.
Further reports state that the exchange giants are planning to launch an offshore derivatives exchange in the region very soon. As part of Coinbase’s “Go Broad & Go Deep” strategy, this follows its announcement to expand its operation to Abu Dhabi.
Crypto Law John Deaton’s Reaction
One of the significant names in the crypto sector, John Deaton has reacted to Coinbase’s offshore move. He pointed out that the move was a result of the actions of an “unelected bureaucratic official.” Obviously, he was referring to the SEC chair Gary Gensler who has been strict on regulating cryptocurrency firms.
In his tweet, he highlighted how the exchange has tried to stay compliant with the SEC over the years and now plans to relocate outside the country. See the tweet below:
Meantime in the United States 🇺🇸 the largest exchange in the U.S. @coinbase, which has done everything it can to be compliant, is thinking of leaving the U.S. although TWO YEARS AGO it was allowed to go public by the SEC. What’s changed in two years?
One unelected bureaucratic. https://t.co/FEL5ixkWoP
— John E Deaton (@JohnEDeaton1) April 18, 2023
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He further argues that the unclarity surrounding what constitutes a security and also the issuance of Wells Notices to crypto firms is “un-American.” Furthermore, he mentioned that other crypto exchange firms like Binance, Bittrex, and Kraken have also faced regulatory observations and that these unclear rules are driving the firms out of the US market.
The offshore exchange move to Bermuda will enable Coinbase to offer more sophisticated crypto-related derivates, especially the ones that are not available in the States due to regulatory restrictions.
This will also enable Coinbase to compete on a larger scale with exchanges like Binance which has taken over global crypto trade. The move will also help Coinbase to expand its revenue base.
We reported previously that Coinbase CEO, Brian Armstrong warned that the unclear regulations may force crypto firms to relocate offshore to operate in more crypto-friendly environments.
In other news, Congressman Tom Emmer has condemned SEC chair, Gary Gensler, calling him an incompetent “cop on the beat.” He says Gary’s actions put everyday Americans in “harm’s way” and push American firms to the Chinese Communist Party. See the tweet below:
.@GaryGensler is an incompetent “cop on the beat.”
He’s actively putting everyday Americans in harm’s way and pushing American firms into the hands of the Chinese Communist Party👇
— Tom Emmer (@GOPMajorityWhip) April 18, 2023