- The top crypto exchange received a Class F license to offer crypto services on the island.
- It comes after tightening regulations in its backyard targeting crypto firms.
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Cryptocurrency exchange Coinbase has been awarded an operating license in the British island territory of Bermuda amid multiple complaints about stringent regulations in the US and rumors the company could be packing bags.
The US-based digital asset exchange said in a blog post on Wednesday that it had been awarded a Class F license by the Bermuda Monetary Authority, enabling it to offer the services of a crypto exchange on the island. The announcement comes slightly a month after the company announced that it was discussing setting up a crypto-trading platform with institutional clients overseas.
Announcing the step, Coinbase praised BMA for its robustness in digital regulations, transparency, and collaboration with other international organizations.
‘‘Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation,’’ the announcement noted. Additionally, ‘‘the BMA is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world.’’
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Speculations around tightening regulations in the US
The crypto economy is now speculating that the exchange could be exiting the US market, following what had been termed as ‘regulations by the enforcement,’ particularly from the Securities and Exchange Commission (SEC). Speaking in the UK earlier this week, CEO Brian Armstrong said concerning the matter that ‘‘anything is on the table, including relocating or whatever is necessary.’’
Besides Bermuda, Coinbase has also been making strides in other markets, including Canada, Abu Dhabi, Brazil, and the UK, as part of a ‘’go broad & go deep strategy,’’ according to the announcement. For instance, the exchange recently opened crypto on-ramp services in Brazil for easier access to digital assets with the Brazilian Real.
Coinbase said it hired a new country director, Lucas Matheson, and was working on a tech hub to promote the global product portfolio in the Canadian market. Similarly, in the UAE, which comprises Abu Dhabi, the publicly listed exchange has engaged the Abu Dhabi Global Market (ADGM) regulator for potential licensing.
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