Coinbase Explores Overseas Venue as US Ramps Up Crypto Scrutiny (bloomberg.com) 21
Institutional clients of Coinbase have been contacted by the firm about plans to potentially set up a new crypto-trading platform overseas, Bloomberg News reported Friday, citing three people with direct knowledge of the matter. From the report: The talks with market makers and investment firms touched on the possibility of establishing an alternative venue -- away from the main Coinbase marketplace -- for global clients, said the people, who asked not to be named as the discussions are confidential. The talks are occurring against the backdrop of an intensifying US crackdown on cryptocurrencies.
Coinbase has yet to decide where the platform might be based, but it has been speaking to market makers about connecting to it, one of the people said. The US environment for digital-asset companies continues to sour following a string of regulatory actions and bank failures. While Coinbase's services are available in more than 100 countries, orders from clients around the world are currently routed to the same US platform.
Coinbase has yet to decide where the platform might be based, but it has been speaking to market makers about connecting to it, one of the people said. The US environment for digital-asset companies continues to sour following a string of regulatory actions and bank failures. While Coinbase's services are available in more than 100 countries, orders from clients around the world are currently routed to the same US platform.
Avoid oversight (Score:5, Funny)
Quick, invest now (as Charlie Stross said, several years ago), or you'll miss your chance to lose everything!
But *your* investment in crypto won't ever be stolen, or lose value. And I've got a bridge for sale.
Kind of gives away the plot (Score:5, Insightful)
"You know, the US is getting ready to examine how safe this is, so, we're looking to set up another place to house your money. Isn't that great?"
You have a choice of where to store your money. None of them are REALLY safe, but some of them are trying hard to be LESS safe.
Re:Kind of gives away the plot (Score:5, Informative)
The rules though are pretty clear, it's just that people are trying to find ways around them, or ignoring them until they grow big enough to have lots of lawyers. Ie, if you look like a bank, act like a bank, and quack like a bank, then it only logical you should follow banking rules. Being "crypto" does not suddenly make it a non-bank, any more than having an Uber app suddenly makes you not a taxi company.
For everyone saying that the government doesn't understand the new economy, of course they understand it. Just like the old economy, the new economy wants to cheat, lie, and steal, in order to make money. The government understands these concepts, even if it's wrapped up in a layer of pseudo tech or mathematical algorithms.
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Being "crypto" does not suddenly make it a non-bank, any more than having an Uber app suddenly makes you not a taxi company.
If it was just a platform for trading between various cryptocurrencies I doubt the government would lift an eyebrow. The issue is that real money is involved too, and that's where the regulations come into play.
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I don't think they're doing it on purpose to destroy crypto
No, they're not that competent. If they were, they would destroy it immediately. The Crypto grifting threatens their established grifting.
the total lack of organization is going to cause them to lose everything they could have gotten if done fairly
There is no benefit to the government to permitting cryptocurrency to exist. It threatens the government's whole revenue system.
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The US isn't behind. They just don't want to regulate it. Generally, we don't care. Plus its political suicide, cause that agency will get complaints of suppressing innovation and draw the eye of the politicians who will waste a lot of these agencies resources in reviews and laws and oversight and overrulings.
The problem is that the hedge funds and banks need the regulations because by default unregulated equities are considered medium to high risk. This bars them from the bulk of the cash out there whi
Re:Kind of gives away the plot (Score:5, Insightful)
Apparently it's illegal to scam your customers! Who knew?
Cockroaches (Score:2)
Somebody shined some light on the cockroaches?
I don't think that the EU will let crypto go with (Score:2)
I don't think that the EU will let crypto go with no rules.
Best thing to happen to all involved (Score:5, Interesting)
This would be great! I have nothing against crypto, go for it, have fun. What I do have a problem with is all these fat cats and banks and hedge funds who suddenly forget the risk they took when they lose. Then they run to the regulatory bodies and tax payers for bailouts or demands for better protection or why they didn't do their job properly. All those can be silenced in one sweep if the lack of jurisdiction doesn't even warrant a reply. Today, the lack of oversight and scope needs to be explained and people just see it as excuses. This makes it crystal clear and limits the losses to that market segment.
For the Crypto guys, have fun operating outside the US. It is a very valid option to meeting regulatory compliance. You are helping the US protect the citizens' savings either way!
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lack of jurisdiction
It the globalized world the only places outside their jurisdiction are Russia and North Korea. And in a system where money is printed infinitely they bailout first and ask questions...never.
Afraid they are (Score:3)
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I'm still waiting for the US to clamp down on Amway!
Pick your country wisely (Score:2)
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> . A government that either doesn't care or is ignorant enough with the way crypto works
All you need is one that's been sanctioned by SWIFT.
Re: (Score:2)
They may need a government that can bail them out too. That sort of means the default location in the Bahamas is out as a location.
Like cockroaches (Score:3)
Burn, baby, burnâ¦. (Score:2)
Disco inferno.