The cryptocurrency exchange Coinbase is examining the possibility of establishing a new trading platform outside the United States. Bloomberg, citing its own sources, reports.
According to the company, Coinbase Global Inc. is consulting with Coinbase Global Inc.’s institutional clients about connecting to an alternative exchange. Its base of operations has not yet been determined.
A Coinbase spokesperson declined to comment in detail. However, he noted that, in line with the mission to promote global adoption of cryptocurrencies, they are evaluating geographic options and meeting “with government officials in jurisdictions with stringent regulatory requirements.”
The exchange’s services are available in more than 100 countries, but all client orders are processed by a platform registered in the United States.
Negotiations are taking place amid tightening regulatory oversight of the industry by U.S. authorities and a string of major bankruptcies of banks friendly to cryptocurrencies.
Experts say launching an offshore exchange would allow Coinbase to insulate itself from hostile U.S. regulation and offer international clients new products not yet approved on its domestic market, such as lending and trading on decentralized markets.
Earlier in March, Coinbase launched the Crypto435 initiative aimed at promoting understanding and support for cryptocurrencies among policymakers and regulators.
Separately, CEO Brian Armstrong said that the United States lags behind in crafting cryptocurrency legislation, while the rest of the world already uses digital assets.