Coinbase CEO Brian Armstrong has indicated that the cryptocurrency exchange may consider relocating if the regulatory landscape in the US does not become clearer.
Speaking at Fintech Week in London Armstrong stated that “anything is on the table including relocating or whatever is necessary” in response to a question from former UK Chancellor George Osborne about the possibility of Coinbase leaving the US.
Armstrong believes that the US has the potential to be an important market for cryptocurrency but regulatory clarity is currently lacking.
Armstrong’s comments come just weeks after Bittrex a rival exchange announced its plans to exit the US by the end of April due to “the current US regulatory and economic environment.”
In March, the Enforcement Division of the US Securities and Exchange Commission SEC issued a Wells Notice to Bittrex stating that it had uncovered evidence of legal violations. The SEC filed lawsuit against Bittrex on Monday.
Armstrong drew comparisons between the regulatory environments in the UK and the US noting that the UK has only one regulator the Financial Conduct Authority FCA responsible for both commodities and securities.
In contrast the US has separate regulatory bodies, the Commodity Futures Trading Commission CFTC and SEC which has caused some confusion for businesses operating in the industry.
According to Armstrong, “The heads of the CFTC and the SEC are actually issuing contradictory statements almost every few weeks. How businesses can operate effectively in an environment where regulatory bodies issue contradictory statements. We just want a clear rulebook.”
Coinbase received a Wells Notice from the SEC in March, which came as a surprise to Armstrong. He stated that Coinbase had met with the SEC “30 times” without receiving any feedback regarding the nature of its business before receiving the notice.
Armstrong hopes that greater regulatory clarity will emerge in the US in the near future, but if it does not, Coinbase may have to consider investing more elsewhere in the world.
