• Coinbase is considering setting up an offshore exchange to escape US regulatory pressure.
• Coinbase is subjected to higher standards of regulatory oversight compared to its competitors, many of whom are based offshore.
• The lack of crypto regulation in the US has been criticized by stakeholders and has made it difficult for firms to do business in the country.

Coinbase Considering Offshore Exchange

Coinbase, a U.S.-based crypto exchange, is reportedly considering setting up an offshore exchange due to the recent regulatory clampdown on the crypto industry. Coinbase has contacted some institutional clients to discuss setting up an alternative marketplace for global users, although the location for this exchange remains undecided as of yet. A Coinbase spokesperson did not confirm if such plans exist but noted that the company continuously assesses options in different regions and meets with government officials to increase global crypto adoption.

Higher Regulatory Standards

As a public company, Coinbase is subjected to higher standards of regulatory oversight than many of its rivals who are based offshore. Competitors like Binance and FTX only have subsidiaries within the U.S., while most of their business operates outside the country’s jurisdiction which gives them certain advantages that Coinbase lacks.

Criticism Over Lack Of Crypto Regulation

Over the years, several crypto stakeholders have criticized the U.S. for its lack of regulatory clarity and regulation-by-enforcement approach adopted by the SEC (Securities and Exchange Commission). Additionally, failures from cryptocurrency friendly banks have also made it difficult for firms in the country to carry out their operations smoothly without any hindrance from authorities or restrictions from financial institutions .

Protection From Regulatory Pressure

Setting up an offshore trading platform would help protect Coinbase from potential regulatory pressures at home as all trades currently get routed through its U.S.-based platform only . This could enable it to avail benefits like those enjoyed by its competitors who operate outside American jurisdiction .

Increasing Global Crypto Adoption

The spokesperson noted that despite these challenges, Coinbase continues assessing options in different regions while meeting with government officials and working towards increasing global crypto adoption .

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