NewsBreak: Coinbase Leaving U.S. Soil with License to Operate Offshore..

The regulatory landscape in the U.S. has been declared hostile by a number of major crypto firms in the States. Coinbase has been fighting against the current ‘regulation by enforcement’ it has faced and is now looking for other opportunities elsewhere.

In a company blog post, Coinbase revealed it had received a license to operate in Bermuda. Coinbase outlines the license acquisition as part of its global scaling but also signals the company’s plans to operate with less pressure from U.S. regulations.

Opening Up New Opportunities
Not only are U.S. regulations hostile, but they are also consulted and confusing, according to Coinbase and other firms like Ripple. Not having a codified legal framework, like Bermuda, means Coinbase struggles to roll out new offerings and crypto products.

According to a person close to the company, as reported by Fortune, Coinbase plans to launch an offshore derivatives exchange in Bermuda as soon as next week. Another report states that Coinbase will offer perpetual swaps—a type of future and a popular product in the crypto space.

Perpetual swaps and other crypto-related derivatives are important tools in bolstering daily trading activity but are predominantly unavailable in the U.S. due to regulatory restrictions.

A Crypto Exodus
The regulatory restrictions have slowed innovation and progression for companies like Coinbase, with Ripple CEO Brad Garlinghouse stating a ‘crypto exodus’ is already ongoing. Other exchanges, such as Kraken, seek overseas opportunities after obtaining a license to operate in Ireland.

Kraken’s senior managing director for global operations, Curtis Ting, explained that the push to leave U.S. shores has been ongoing for around two years.

“This is definitely a trend that’s gotten more noticed though [crypto companies looking beyond the U.S.],” Ting told Fortune, “particularly as an antithesis to other jurisdictions that have taken a more chaotic approach. The flight to places like Europe is on the basis of clarity.”

On the Flipside
At the heart of the U.S. regulatory crackdown is the SEC, with its chairperson Gary Gensler adamant that there is regulatory clarity and that crypto companies are choosing to be non-compliant.

Why You Should Care
The battle for regulatory clarity will likely be ongoing. Still, the fact that there are more welcoming global jurisdictions that can foster better crypto innovation should be cause for concern for the U.S. if it wants to be a tech leader in this FinTech space.

The Destruction of the Dollar is commencing..

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