As a result of FTX's demise and the closure of three crypto-friendly institutions, the United States is stepping up its efforts to suppress the cryptocurrency industry.
According to persons familiar with the plans, Coinbase, a cryptocurrency exchange based in the United States, is thinking about establishing a cryptocurrency trading platform abroad and is currently exploring the idea with institutional clients.
According to Trade Algo, no decision has been made about the location of such a trading platform, which coincides with U.S. regulators tightening their grip on cryptocurrencies.
After the bankruptcy of the cryptocurrency exchange FTX in November, regulatory action against the industry accelerated. The recent closure of Silicon Valley Bank, Silvergate Bank, and Signature Bank—all of which had some connection to cryptocurrencies—alarmed lawmakers even more.
It's not just Coinbase. Several US cryptocurrency companies are searching for new banking partners in foreign countries. A growing amount of inquiries to open accounts from offshore businesses, including those situated in the United States, have been received, according to Sygnum in Switzerland and Bank Frick in Lichtenstein, who both confirmed this to CoinDesk.
According to a Coinbase spokesman, the exchange is evaluating geographic options and talking with "government authorities in high-bar regulatory jurisdictions" as it seeks to promote global acceptance of cryptocurrencies.
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