Coinbase, the leading US-based cryptocurrency exchange, has announced plans for a major international expansion in countries with “clear crypto rules.” The targeted markets include the European Union (EU), the United Kingdom (UK), Australia, Brazil, Canada, and Singapore.
According to a blog announcement by Coinbase, the company’s near-term priority is to acquire licenses in these countries and regions. These jurisdictions have shown increased regulatory clarity for the crypto sector, making them attractive for Coinbase’s expansion plans.
The decision to focus on countries with clear regulatory paths aligns with Coinbase’s strategy to prioritize regulation, innovation, and user trust. A senior Coinbase executive mentioned that 83% of G20 members and top-tier financial jurisdictions are moving forward with clear rules for cryptocurrency, while the US lags behind.
Coinbase sees the enactment of clear rules, innovation of efficient products and services, and user trust as the formula for its long-term growth. Nana Murugesan, Vice President of International and Business Development at Coinbase, stated, “We see the enactment of clear rules; innovation of more efficient, more accessible products and services; and user trust created through these products and services as our formula for long-term growth.”
This expansion plan marks Phase II of Coinbase’s “Go Broad, Go Deep” strategy, which aims to diversify its business while keeping up with regulatory developments. The company has experienced success in the past six months, particularly in the EU and UK, where clear regulations have been enacted. In fact, Coinbase is currently finalizing its selection of where to locate its MiCA hub within the EU.
Coinbase will not only seek regulatory approval and compliance with applicable rules but also expand its products and services. This includes offering derivatives and striking new partnerships with banks and payment providers to enhance access to on- and off-ramps for cryptocurrencies. These developments align with Coinbase’s effort to provide a more comprehensive and diverse range of offerings to its users.
Brazil’s upcoming role as the G20 chair in December 2023 presents a significant opportunity for Coinbase to maintain and influence the regulatory progress in the country. The company plans to keep track of regulatory progress in each of the targeted countries and jurisdictions, aiming to contribute to the momentum of clear crypto rules.
It is worth noting that Coinbase currently faces a lawsuit from the US Securities and Exchange Commission (SEC) alleging that the company operated as an unregistered broker. However, Coinbase has expressed its determination to vigorously defend itself against the SEC’s allegations.
Overall, Coinbase’s major expansion plans in countries with clear crypto rules highlight the company’s commitment to regulatory compliance, innovation, and long-term growth. By entering markets that prioritize regulatory clarity, Coinbase aims to establish a strong presence internationally and offer a wider range of products and services to its users.
