In the face of increasing regulatory controls in the US, cryptocurrency exchange giant Coinbase Global Inc. is considering relocating to the United Arab Emirates (UAE). CEO Brian Armstrong shared in a recent interview with Bloomberg TV that the company is seeking an international hub. Moreover, Coinbase wants to use that hub, in this case, UAE, to serve a broad spectrum of countries.
“The UAE is leading the way regionally in crypto…”
Brian Armstrong, CEO of Coinbase
Armstrong made several positive statements about UAE’s approach to crypto during a panel discussion at the Dubai FinTech Summit 2023. There, he highlighted the nation’s strategic position bridging the markets of Europe and Asia, along with the potential to expand into Africa. This, he said, makes the UAE a compelling candidate for Coinbase’s international hub.
While Armstrong assured that Coinbase will not leave the US market, he voiced his concerns about the current US regulatory landscape for cryptocurrency. He acknowledged the UAE’s approach to crypto regulation as more forward-thinking, especially when compared to the US.
“We are looking for a home to set up an international hub that could serve the long tail of countries in the world…”
Brian Armstrong
Coinbase Is Not The Only Company Considering A Move To UAE
The move comes after a series of crypto-related regulatory probes in the US that are not good for crypto. These have driven several companies to consider shifting their operations to financial hubs like Dubai, Singapore, and Hong Kong. These jurisdictions are increasingly attractive to crypto entrepreneurs and investors. One of the main factors that make these places perfect for them is their more progressive regulatory environments.
Coinbase has found itself in a challenging position amid a market downturn and a stringent US regulatory atmosphere. The company was forced to cut 20% of its staff in January. Additionally, it faced a threat of legal action from the US Securities and Exchange Commission (SEC) over several of its business lines in March.
Despite these setbacks, Coinbase has continued to strive for global expansion. It recently launched an international derivatives exchange under a Bermuda license. This way, the company demonstrated its commitment to diversify its operations outside the US.
The potential shift to the UAE reflects a broader trend in the crypto industry. As time passes by, companies are seeking more favorable regulatory environments to support their growth and innovation. Coinbase’s decision underscores the importance of regulatory clarity for the cryptocurrency sector and could potentially influence other crypto businesses to consider similar moves.
In an industry that is continually evolving and maturing, UAE is taking careful steps. The potential relocation of one of the world’s largest crypto exchanges, Coinbase, to the UAE is yet another sign of the global realignment taking place in the digital finance world.