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Amid Regulatory Troubles, Coinbase Sets Its Sights on Singapore

Amid Regulatory Troubles, Coinbase Sets Its Sights on Singapore
Amid Regulatory Troubles, Coinbase Sets Its Sights on Singapore

Coinbase, a major global cryptocurrency exchange, is looking to expand its presence in Singapore as part of its international growth strategy in response to increased regulatory scrutiny in the US. This decision comes after the Securities and Exchange Commission (SEC) issued a Wells Notice to Coinbase earlier this year, signaling potential regulatory action related to the exchange’s listing of unregistered securities.

Brian Armstrong, the CEO of Coinbase, has conveyed his discontent with the SEC, asserting that it is pursuing a solitary agenda, with SEC Chair, Gary Gensler taking a more pessimistic approach towards digital currencies. Armstrong has also suggested that Coinbase might be forced to relocate its operational headquarters beyond the borders of the United States should the current regulatory obstacles persist..

Coinbase Global Expansion 

Coinbase, the cryptocurrency exchange, is ramping up its global expansion strategy in response to the crackdown on crypto by regulators in the United States. The company has recently launched the Coinbase International Exchange in the Bahamas, which will provide trading in derivatives. 

Furthermore, they are exploring the possibility of using the United Arab Emirates as a strategic hub. In October 2020, the Monetary Authority of Singapore granted Coinbase in-principle approval, leading to a rollout of various products and services for its clients in Singapore.

Coinbase Targets Singapore 

Coinbase has also launched a range of fresh features recently. These include the option to buy USDC with Singapore dollars (SGD) without incurring any fees. Additionally, users can enjoy incentives for holding USDC, advanced trading using USDC order books, and staking opportunities for various cryptocurrencies like ETH, SOL, ADA, ATOM, and XTZ.

Earlier this year, Coinbase facilitated the process for Singaporean customers to join its cryptocurrency exchange by introducing free bank transfers and integrating with Singpass, the digital identity application. The exchange is working together with the Monetary Authority of Singapore to enhance the regulatory structure, safeguard consumers, and expand retail accessibility.

Coinbase vs SEC

Coinbase has faced several challenges due to the SEC’s crackdown. The regulatory agency has sent a letter to Coinbase, warning of potential legal repercussions, and also issued a Wells Notice to the exchange, indicating that they may take regulatory action related to the inclusion of unregistered securities. 

Coinbase has conveyed its strong disapproval of the SEC, alleging that the regulatory agency is failing to fulfill its obligation of supervising the registration process for companies selling their services. Despite the SEC’s recent attempts to restrict staking services offered by centralized providers, Coinbase has reassured its customers that it will continue to offer staking services and may even improve them.

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