Is Coinbase Considering Relocating Away From the US?

April 19, 2023

Leading US-based cryptocurrency exchange Coinbase may consider moving its headquarters outside of the country. The crypto industry in the United States is currently experiencing uncertainty due to unclear regulations.

This uncertainty has led many crypto companies to consider relocating or shifting their operations to other territories. According to Coinbase CEO Brian Armstrong, this will happen unless the country changes its tough approach to regulation.

“Anything is on the table,” stated Armstrong when asked by ex UK Chancellor George Osborne at a fintech conference in London this week if Coinbase would consider moving to Britain.

“Including, you know, relocating or whatever is necessary,” added Armstrong.

Although Armstrong has expressed his disagreement with current US crypto regulation, the fact that he is considering relocation marks a significant increase in the level of rhetoric.

In late March, the US Securities and Exchange Commission informed Coinbase that it plans to take enforcement action against the exchange. However, Armstrong insists the US has the potential to be an important market in the crypto industry.

JUST IN: 🇬🇧 Coinbase CEO meets with UK Economic Secretary and City Minister to discuss #crypto. pic.twitter.com/AjAhrBpT1Z

— Crypto Trends (@CryptoTrends) April 17, 2023

“I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider relocating or whatever is necessary,” he said.

The United Kingdom is currently Coinbase’s second largest market globally in terms of revenue.

Is Coinbase really moving?

Speculations about the possible relocation have reached their peak since Armstrong met with the UK Economic Secretary and City Minister to discuss crypto.

JUST IN: 🇬🇧 Coinbase CEO meets with UK Economic Secretary and City Minister to discuss #crypto. pic.twitter.com/AjAhrBpT1Z

— Crypto Trends (@CryptoTrends) April 17, 2023

“Coinbase would likely move to the UK, and maybe most validators will move their businesses out of the US,” tweeted Anatoly Yakovenko, Co-Founder of Solana.

A Redditor commented on the potential consequences of Coinbase relocating due to uncertain US crypto regulation, stating that “The US will really be losing out. Other countries will pick up the slack and at least will do some innovation with this.”

Such opinion reflects a growing concern among some in the crypto industry that the US is falling behind other countries in terms of crypto regulation and innovation.

The exchange tweeted, “We want the UK to succeed and be a big part of that success. Progress in the UK towards creating a regulated environment that encourages the industry and protects consumers is incredibly encouraging.”

Regulatory clarity for crypto industry in UK

The United Kingdom could see specific legislation aimed at regulating the cryptocurrency industry within the next 12 months, according to Andrew Griffith, economic secretary to the UK Treasury.

The government has already laid out plans to regulate crypto assets in a consultation paper, with the consultation period set to end on April 30.

“Specific crypto regulation could come into force within a year or so,” predicted Griffith.

The UK hopes to position itself as a welcoming place for crypto firms to set up shop, in contrast to the US where regulators have been taking a stricter approach to enforcement.

Last year, Rishi Sunak, then UK finance minister and now prime minister, expressed his ambition to make Britain a “global hub for crypto asset technology.”