Coinbase CEO Brian Armstrong has called on the US and UK to create clearer rules for the cryptocurrency industry to prevent firms from relocating to offshore locations. Armstrong made the comments during an Innovate Finance conference, noting that the failure of the Bahamas-based FTX exchange in 2022 highlighted the importance of having transparent regulations. The UK has already established a set of rules to regulate crypto and its financial watchdog has called for tough rules to “detoxify” the sector. Armstrong praised Britain for “moving fast on sensible crypto regulation” but added that he was concerned about UK banks taking a hardline approach to customers transferring money to crypto exchanges to prevent fraud.
Armstrong also criticised the US, where the cryptocurrency industry remains mostly unregulated. The Securities and Exchange Commission threatened to sue Coinbase in March over certain products. Armstrong said that a lack of clarity in US regulations is forcing crypto companies to develop in offshore locations. He warned that the US and the UK needed to develop clear rules to prevent companies from developing in “offshore havens”. The EU has drafted bespoke rules for the crypto sector, but other countries are still working to establish regulations.
US regulators and law enforcement agencies have launched a broad crackdown on crypto companies, aimed at preventing illicit activity and targeting illegal offerings. Despite this, Armstrong has voiced concerns that crypto companies could still be forced to relocate to offshore locations. Armstrong warned that it was crucial to create clear regulations to prevent firms from being built in offshore havens.
