The reported site would be a way for Coinbase to hedge its bets against a coming onslaught of crypto regulation that could prove very unfriendly indeed.
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Coinbase is planning to set up a new trading venue outside of the U.S., according to reports.
The exchange has announced plans to accelerate its "Go Broad, Go Deep" international strategy over the following two months, launching new products and services in markets on six continents.
Coinbase has started talking to its existing international clients including market makers and institutional investment firms about setting up a separate platform headquartered outside the U.S., Bloomberg reported.
While Coinbase is already operating in more than 100 countries, all of those subsidiaries funnel clients to the same U.S. trading platform.
With a 24-hour trading volume of $2.8 billion in the past 24 hours, Coinbase is currently the second-largest spot exchange by volume — although it's a distant second behind Binance, which had 11 times the volume. CoinMarketCap is owned by Binance.
But it is barely in the very lucrative crypto derivatives business with its fledgling Coinbase Derivatives Exchange, a Commodity Futures Trading Commission-regulated platform it acquired in January 2021. That would change with the new global trading venue, which would offer derivatives as well as spot trading, sources told The Block.
An internationally headquartered platform would also offer the company an alternative to the the U.S., which is engaged in a regulatory crackdown that strengthened with the bankruptcy of Sam Bankman-Fried's FTX exchange and redoubled last week with the collapse of three crypto-related banks, including the two most important, Silvergate Bank and Signature Bank.
And it is coming off a horrible 2022. The Nasdaq-listed exchange saw a net loss of $2.6 billion on revenues of $3.15 billion — well under half of 2021's $7.35 billion.
Follow the Regulations
The new platform would focus on "high-bar regulatory jurisdictions," Coinbase said. That would include the U.K., SIngapore, and the EU, where the Markets in Crypto Assets (MiCA) regulatory package just passed.
A week after its recent "Go Broad, Go Deep" announcement, Coinbase pointed to the U.K. as a potential global crypto hub.
It said that recent moves by the Treasury and Exchequer show "that they are delivering on this commitment and recognise that digital assets and crypto will be a central pillar to future-proofing the competitiveness of the UK's financial centers."
Other destinations mentioned as aiming to become crypto hubs in the "Go Broad, Go Deep" announcement were Brazil, the UAE, Australia, Hong Kong, Switzerland, Bermuda and Japan.
Coinbase CEO Brian Armstrong long cultivated a strong relationship with regulators, and has argued that strong, clear regulation will be good for crypto. In early March he called building a U.S. regulatory framework "a matter of national security." Without one, Armstrong said:
"The U.S. risks falling behind both technologically and politically."
He has clashed with regulators several times recently, notably over a number of issues related to the Securities and Exchange Commission's (SEC) claim that nearly every cryptocurrency is a security.
Yield-bearing staking accounts like Coinbase Earn are another, with Armstrong saying earlier this month that he's "hearing rumors" that staking could be banned outright — and promising to fight such a ruling in court.<div><iframe width="100%" height="166" scrolling="no" frameborder="no" allow="autoplay" src="https://w.soundcloud.com/player/?url=https%3A//api.soundcloud.com/tracks/1472982877&color=%23ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false&show_teaser=true"></iframe></div>
FAQs
Coinbase is planning to set up a new trading venue outside of the U.S., according to reports. The exchange has announced plans to accelerate its "Go Broad, Go Deep" international strategy over the following two months, launching new products and services in markets on six continents.
Is Coinbase planning to set up crypto trading platform outside the US? ›
Coinbase started its international exchange in May as part of efforts to diversify away from the US. It intends to list more tokens on the platform over time and open up offshore spot trading to retail investors as liquidity builds. Tusar said hosting spot and derivatives activity on the same venue can boost volumes.
Does Coinbase operate internationally? ›
Coinbase International Exchange powers perpetual futures trading on Coinbase Advanced for non-US professional investors and advanced retail users in eligible countries.
Is Coinbase allowed in NYC? ›
Yes, New York State residents can buy XRP on exchanges such as Coinbase, Gemini and Bitstamp.
Is KuCoin legal in New York? ›
Major crypto exchange KuCoin has agreed to pay $22 million in fines to the State of New York. In addition to the fine, KuCoin will prevent state residents from using its platform to perform cryptocurrency transactions.
Does Coinbase report to US government? ›
Key takeaways. Coinbase reports Form 1099-MISC for customers who've earned more than $600 of income through means such as staking and referrals. Starting in the 2025 tax year, Coinbase will be required to report all capital gains and losses to the IRS through Form 1099-DA.
Which platform is best for crypto trading in US? ›
Best Crypto Exchanges and Apps for May 2024
- Best for Low Fees and Best for Experienced Traders: Kraken.
- Best for Beginners: Coinbase.
- Best Mobile App: Crypto.com.
- Best For Security: Gemini.
- Best for Altcoins: BitMart.
- Best for Bitcoin: Cash App.
- Best Decentralized Exchange: Bisq.
Additionally, at the time of writing, the countries banned from using Coinbase include OFAC countries such as North Korea, Iran, Syria, Cuba, and Crimea. These countries have specific sanctions imposed by the Office of Foreign Assets Control (OFAC), restricting their access to certain financial services.
Can non-us use Coinbase? ›
Coinbase International Exchange is open for applications by non-US institutions in select jurisdictions.
What country is Coinbase based in? ›
Coinbase Global, Inc. June 2012, in San Francisco, California, U.S.
Funds on hold
When you use a linked bank account (ACH) to buy crypto or add cash to your account balance, the funds are placed on hold and won't be immediately available to send or cash out. Think of this like depositing a check to your bank account and having to wait for it to clear before you can remove the funds.
Can you use a VPN with Coinbase? ›
Is it legal to use a VPN with Coinbase? Yes, it's legal to use a VPN for Coinbase as it doesn't go against their Terms of Service. If you decide to use one, you will protect your online identity while making online transactions on the platform.
What's better than Coinbase? ›
eToro – Overall Best Coinbase Alternative With Transparent Fees And Smart Portfolios. Founded in 2007, eToro has become a leading trading platform for crypto, with over 30 million customers in over 100 countries. It is beginner-friendly, caters to experienced investors, and is currently the best alternative to Coinbase ...
Why is crypto trading not allowed in New York? ›
The Office of the New York State Attorney General (OAG) is the state securities and commodities regulator for the state of New York, which includes cryptocurrency. Cryptocurrencies are subject to extreme and unpredictably high price swings that make them among the most high-risk investments on the market.
Can US citizens legally use KuCoin? ›
In the United States, KuCoin operates with some limitations. US residents can't access all platform features if they don't complete full identity checks. For example, they cannot create sub-accounts, make APIs, or buy crypto with credit cards or through online payment methods.
Why is KuCoin closing? ›
Prominent Global Cryptocurrency Exchange KuCoin And Two Of Its Founders Criminally Charged With Bank Secrecy Act And Unlicensed Money Transmission Offenses.
What countries can trade on Coinbase? ›
Coinbase Wallet now supports fiat onramps for the following countries: United States, United Kingdom, Canada, Australia, Singapore, and most European Union countries. This means that users in these countries can deposit and withdraw fiat currency, such as USD, GBP, and EUR, directly from their Coinbase Wallet.
Where is Coinbase moving to? ›
In April 2023, the company announced that its Coinbase Bermuda division had been licensed to operate cryptocurrencies in Bermuda. The next month, the company launched the Bermuda-based crypto derivatives exchange, named Coinbase International Exchange, allowing non-U.S. customers to trade Bitcoin and Ethereum futures.
Can non American use Coinbase? ›
Yes, non-US citizens can use Coinbase or other cryptocurrency exchanges like Binance.
