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Firms are actively searching for new banking partners as the regulatory climate in the US has now turned sour.
Top American crypto exchange Coinbase is presently weighing its options regarding the creation of a new crypto trading platform. According to a Bloomberg report, the platform will be located outside the United States, and Coinbase has already begun talking about the move with institutional clients.
Per the report, the exchange is also yet to decide on the particular location to use for the proposed trading platform. However, the decision appears to be in line with the recent aggressive approach of US regulators toward the crypto industry.
Regulatory Actions Tightens in the US
Following the multiple crashes that occurred in the crypto space in early 2022, there has been increased scrutiny of the sector. However, the November collapse of the crypto exchange FTX caused regulatory actions to increase multiple folds. It was a major situation that had a contagion effect on the entire crypto industry and even beyond.
Additionally, there is also the recent failure of renowned financial institutions such as Silvergate Bank, Signature Bank and Silicon Valley Bank, which were all crypto backers. Their sudden failure has raised even more concerns and now lawmakers may just have had enough.
Interestingly, however, Coinbase isn’t alone in this line of thought. There are several other crypto-based firms in the U.S. currently looking to set up in other jurisdictions. The firms are actively searching for new banking partners as the regulatory climate in the US has now turned sour.
To put the above statement into perspective, Switzerland-based Sygnum and Bank Frick in Lichtenstein have confirmed that there is an increasing number of requests from offshore companies looking to open accounts with them. Expectedly, most of the firms are based in the US.
Coinbase Is Still Keen on Global Crypto Adoption
Meanwhile, 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 has also been meeting “with government officials in high-bar regulatory jurisdictions”.