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April 19, 2023

Coinbase Sets Sights on UK Crypto Hub As Regulatory Uncertainty Looms at Home in the US

By Conor Devitt

Amid swirling regulatory uncertainty in the United States, top American crypto exchange Coinbase is emphasizing its efforts to make inroads in the United Kingdom.

While visiting London this week for UK FinTech Week 2023, Coinbase CEO Brian Armstrong and met with MP Andrew Griffith, the UK’s economic secretary to the Treasury.

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Says the Coinbase CEO of their meeting,

“A few points we shared:

1. Some UK banks are blocking fiat payments to crypto companies which is not ok. Good fraud controls make sense, a blanket ban does not (and is likely not lawful). Needs further education and collaboration.

2. The Financial Promotion regime goes too far if there is a 24-hour ‘cooling off’ period for crypto trades (harms real-world use cases, formation of capital markets, and consumers).”

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Coinbase notes in a new blog that the UK has been one of its fastest-growing user markets.

Last month, the U.S. Securities and Exchange Commission (SEC) sent a Wells Notice to Coinbase, which said they had made a “preliminary determination” to recommend filing an enforcement action against the crypto exchange for allegedly violating securities laws.

Real Vision CEO Raoul Pal, noting Armstrong’s recent visit to the UK, argues that “the US’s loss will be the UK’s gain.”

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