Coinbase to Prioritize Crypto Markets Outside of US in Its Expansion Strategy

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Temitope Olatunji
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Coinbase is strategically expanding its cryptocurrency exchange services globally, with a particular emphasis on markets with clear regulatory frameworks.

In its short-term expansion strategy, Coinbase is prioritizing countries outside the United States based on their well-defined cryptocurrency regulations. Notable countries in this selection include the European Union, the United Kingdom, Australia, Canada, and Singapore. The regulatory clarity in these regions is crucial for the exchange’s operations.

Coinbase’s vice presidents for international business and international policy are clearly dissatisfied with the regulatory situation in the United States. They stated that, while many countries are moving forward with establishing clear rules for cryptocurrencies, the United States is not. Rather, they are attempting to impose existing rules and regulations through legal channels. This makes it difficult for many cryptocurrency exchanges to conduct business in the country. They said:

“Every part of the world is seeing progress on crypto-forward regulation – except for the US, which is opting for a “strategy” of enforcement of existing rules and new regulation through the courts. By sidelining itself while so many advanced and emerging economies move ahead, the US risks forfeiting its influence over the future of the financial system.”

The Securities and Exchange Commission (SEC) has sued Coinbase several times. The SEC recently sued Coinbase for allegedly violating brokerage laws by offering unregistered securities. As a result of the regulatory approach, the vice presidents believe that the United States risks losing its position in the cryptocurrency space.

Coinbase’s ‘Go Broad, Go Deep’ Expansion Plans

Coinbase’s Phase 2 of the ‘Go Broad, Go Deep’ strategy focuses on markets open to regulatory innovation. The company is actively considering the location of its MiCA hub in the EU, underscoring its commitment to establishing a robust presence in this market.

Additionally, Coinbase plans to introduce derivative products, such as the International Exchange in Bermuda, in collaboration with the Bermuda Monetary Authority. The company emphasizes its commitment to legal compliance in all countries where it operates, adhering to local regulatory frameworks.

The exchange also aims to collaborate with G20 member nations and major financial centers to establish global standards for the cryptocurrency industry. Coinbase acknowledges the significant role played by Brazil in cryptocurrency regulation and plans for its co-founder and CEO Brian Armstrong to visit Brazil and Canada later this year to engage with key stakeholders and decision-makers.

Over the past six months, since the cryptocurrency exchange embarked on its mission to expand its global financial system, it has achieved significant milestones. These achievements encompass the expansion of its operations into various countries, with a notable focus on crypto-forward markets like Singapore, Brazil, and Canada.

Additionally, the company has introduced a range of efficient and accessible products through strategic partnerships. Furthermore, the firm has implemented strategies aimed at enhancing trust in its services. Notable moves in this regard include integrating with payment gateways and other trusted financial systems in various jurisdictions.

Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor's and master's degrees in linguistics. When not writing, he trades forex and plays video games.