Coinbase, the San Francisco-based cryptocurrency exchange, is entering a new phase of expansion with a strong focus on international markets. This strategic move comes as the exchange aims to leverage favourable regulatory environments emerging worldwide.
The crypto exchange has disapproved of how the U.S. handles crypto regulations, which differs from how many other countries view it positively. A recent blog post by Coinbase states that 83% of G20 countries are improving their clarity on crypto regulations, with the U.S. being an exception.
Today, 83% of G20 members and major financial hubs have made progress toward regulatory clarity for crypto. But the US is an outlier.
A picture paints a thousand words. https://t.co/DpxoKFr4yV pic.twitter.com/KvQ4q0zlsn
— Coinbase 🛡️ (@coinbase) September 7, 2023
Coinbase’s International expansion efforts are partly driven by regulatory challenges in its home country, the United States. The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Coinbase. They accuse the platform of operating illegally and selling unregistered securities. This legal battle underscores the increasing regulatory scrutiny faced by crypto companies operating in the U.S.
Coinbase’s International Expansion Strategy
In a recent blog post, Vice Presidents of Coinbase, Tom Duff Gordon and Nana Murugesan, outlined the exchange’s new international expansion strategy. Their plan includes focusing on countries with clear and crypto-friendly regulations. The exchange intends to acquire licenses, complete registrations, and strengthen its operational presence in these chosen markets.
Global Priority Markets
Coinbase’s near-term strategy includes focusing on selected markets, which are prominent members of the European Union, the United Kingdom, Australia, Canada, Singapore, and Brazil. These countries stand out for their active efforts to create clear cryptocurrency regulations. Thus, the crypto exchange aims to capitalize on this regulatory clarity to expand its services.
Brazil’s Key Role in Coinbase’s International Expansion
Meanwhile, the crypto exchange is placing a strong emphasis on Brazil, which will chair the G20 in 2024. This demonstrates exchange’s strategic approach to influencing cryptocurrency regulations. This focus is clear, considering that Coinbase expanded its services in Brazil in March.
Big news! Coinbase is expanding in Brazil! 🇧🇷
Our mission is to democratize access to the crypto economy globally so we've integrated with Pix for smooth transactions, launched a fully localized app in Portuguese, and offer 24/7 support. pic.twitter.com/NkeGyvCu3h
— Coinbase 🛡️ (@coinbase) March 21, 2023
Furthermore, co-founder and CEO, Brian Armstrong, plans to visit Brazil later this year. He intends to meet with key individuals and stakeholders during his visit. Hence, it appears that Brazil occupies a prominent position in Coinbase’s international expansion strategy.
U.S. Regulatory Approach
In the blog post, Murugesan and Duff Gordon expressed concern over the regulatory approach taken by the United States. They highlighted the U.S. strategy of strict enforcement of current rules and the introduction of new regulations through the courts. Therefore, they believe this could make the U.S. lose its position and market share in the global crypto industry.
Coinbase’s Commitment to Crypto
While U.S. rules are tough for Coinbase, they don’t seriously hinder its mission to increase its international presence. This is evident with the recent revelation of the exchange’s Phase II expansion plan.
According to Coinbase’s international expansion plan named “Go Broad, Go Deep,” the exchange has more focus on the countries with clear regulatory environment. The priority lies in the European Union, as the exchange wants to establish a MiCA hub within the region. Furthermore, Coinbase has plans to increase its product and services offerings. This plan also includes increasing the safety of Coinbase Wallet for exploring Web3 technologies.
Meanwhile, Coinbase also has plans to integrate with payment providers, banks, and other new startups. By securing such partnerships, the crypto exchange intends to expand the entering and exiting pathways for the cryptocurrency markets.
Lastly, Coinbase seeks collaboration with G20 member countries to contribute to the establishment of global cryptocurrency industry standards.