Coinbase Identifies EU, Canada, Brazil, Singapore, and Australia as Key Priorities

08 Sep, 2023

Coinbase Identifies EU, Canada, Brazil, Singapore, and Australia as Key Priorities

Coinbase has identified several countries beyond the borders of the United States where it plans to concentrate its operational efforts in the near future. This decision is rooted in the observation that these countries have relatively clearer regulations pertaining to cryptocurrencies.

In a blog post published on September 6th, Coinbase's Vice Presidents for International Business and International Policy, Nana Murugesan and Tom Duff Gordon, have singled out the European Union, United Kingdom, Canada, Brazil, Singapore, and Australia as their "near-term priority markets." They emphasize that these nations are actively implementing unambiguous regulatory frameworks for cryptocurrencies, making them attractive targets for Coinbase's expansion strategy.

Coinbase is gearing up to acquire licenses, complete registrations, and fortify its presence in these markets. They are committed to complying with local regulations and strengthening their operations in alignment with these rules.

The blog post also highlights a notable contrast in regulatory approaches between the United States and the rest of the world. While other regions are making progress in adopting crypto-friendly regulations, the U.S. has chosen a path of enforcing existing rules and introducing new regulations through legal channels. Coinbase's leaders express concern that this approach could diminish the country's influence in the rapidly evolving crypto space.

Despite these challenges, Coinbase remains steadfast in its mission to modernize the global financial system and foster economic freedom and opportunity. They are determined not to remain passive simply because the U.S. is pursuing a different regulatory strategy.

In its homeland, Coinbase is currently facing regulatory action. The Securities and Exchange Commission has filed a lawsuit against the company, alleging the sale of unregistered securities and illegal operations.

Coinbase's recent focus on these priority markets is part of the second phase of its expansion plan, aptly named "Go Broad, Go Deep." Their strategy includes forming partnerships with both global and local banks and payment providers to facilitate the expansion of their fiat onramps. Additionally, they are committed to ensuring that their governance systems are compliant with local regulations.

As part of their expansion and advocacy efforts, Coinbase plans to intensify its lobbying activities and visibility campaigns in the lead-up to the European Union elections scheduled for the following June. They also aim to engage with the G20 group with the goal of establishing global standards for cryptocurrencies. To track the progress of each country's crypto regulations, Coinbase will maintain a "scorecard" system.

Coinbase's lobbying efforts within the G20 appear to be particularly focused on Brazil, which is set to assume the G20 chairmanship in 2024. In March, Coinbase took steps to expand its services in Brazil. According to the blog post, Brian Armstrong, the co-founder and CEO of Coinbase, is scheduled to visit the country later in the year to engage with key decision-makers and stakeholders.

This strategic approach underscores Coinbase's commitment to navigating the complex regulatory landscape while actively seeking opportunities for growth and influence in the evolving world of cryptocurrencies.