As regulatory storms gather over cryptocurrency companies in the United States, leading exchange oinbase">Coinbase Global Inc. has turned its gaze overseas by launching spot trading services on its international platform. This surprise move seems a preemptive effort to diversify operations away from its home turf, where legal battles continue to rage between regulators and major industry players.
Unlike its primary domestic exchange catering to retail investors, oinbase">Coinbase’s global platform has focused largely on crypto derivatives—until now. Starting Thursday, the exchange invites institutional investors from around the world to buy and sell Bitcoin and Ethereum using USD Coin (USDC), a popular regulated stablecoin pegged to the US dollar.
“Offering spot and derivatives side-by-side promotes deeper liquidity and price transparency,” explained Greg Tusar, Head of Institutional Products at oinbase">Coinbase. “We want to build a market that institutions can rely on, combining the features they expect and the reliability they demand.”
The launch comes amid serious questions surrounding the regulation of cryptocurrencies in the US. The Securities and Exchange Commission (SEC) has aggressively targeted platforms facilitating digital asset trading, arguing many should register as official exchanges. Both oinbase">Coinbase and rival Kraken face lawsuits from the SEC over allegedly offering illegal securities and operating as unregistered broker-dealers.
While oinbase">Coinbase vows to defend itself vigorously, legal experts say the cases highlight the complexities around crypto oversight. Other nations like Singapore, Switzerland, and Liechtenstein have taken more open stances toward digital asset innovation–perhaps part of the appeal for oinbase">Coinbase expanding internationally.
Industry leader Binance also faces its share of scrutiny, including investigations from the US Justice Department and IRS. Its recent agreement to pay over $4 billion in fines related to past anti-money laundering lapses led to large customer withdrawals, decreasing its dominance.
oinbase">Coinbase first unveiled its global exchange in March 2022 to complement its primary US operation. The company says enhancing platforms like this can unlock more choice and value for clients worldwide interested in crypto investing.
As with its regional exchanges, oinbase">Coinbase plans to methodically add more digital tokens once sufficient liquidity and regulations allow. But while startups face existential threats in America’s cloudy regulatory environment, opportunities still abound for those with patience, prudence, and vision to take crypto mainstream worldwide.
