Coinbase receives digital asset business license on Bermuda
Coinbase granted a digital asset license in Bermuda. Coinbase is considering leaving the US markets after the legal actions of the Securities and Exchange Commission (SEC) towards several companies in cryptocurrency industry.
Coinbase, one of the world’s largest crypto exchanges, has recently received a Digital Asset Business License from the Bermuda Monetary Authority. This move is representative of Coinbase’s strategy to expand internationally, as U.S. regulators have been cracking down on the crypto industry. The US Securities and Exchange Commission (SEC) Chair Gary Gensler recently testified before the House Financial Services Committee and highlighted the tensions between the SEC and congressional Republicans over digital asset regulation.
Coinbase will be opening an offshore derivatives exchange in Bermuda, as reported by Fortune. They have also expanded in Abu Dhabi, Canada, Brazil and Singapore.
Coinbase CEO Brian Armstrong has proposed creating cryptocurrency regulation guidelines in order to address the noncompliance in the crypto market. He has expressed disappointment that the SEC had not provided any feedback during their 30 meetings over the past year. On the other hand, SEC Chair Gary Gensler has argued that crypto investors should receive the same protections as other investors, and that calling oneself a DeFi platform does not excuse noncompliance with securities laws.
Increased pressure from the regulators stat to be mentioned after The US SEC has taken legal action on Coinbase and Tron, and the Binance exchange taking fire from a different US government agency.