Coinbase warns of US regulatory approach driving crypto business to other countries

Crypto exchange Coinbase has cautioned that the United States government's regulatory strategy towards cryptocurrencies is pushing businesses to other nations. In a blog post, Daniel Seifert, the Vice President and Regional Managing Director of Coinbase in Europe, claimed that America's "regulation by enforcement" method had created an "environment of uncertainty and instability in the crypto industry."

Seifert also questioned whether other countries were eagerly trying to fill the void left by the US. As per his post, he said: “We are seeing first-hand how some countries are embracing innovative policies while others continue to cling to more traditional ways of thinking about this new technology sector.”

The statement comes as various regulatory agencies have been taking a closer look at digital currencies. The SEC recently postponed its verdict on approving Bitcoin ETFs until November 2021 while keeping investors on edge.

Coinbase has become one of many cryptocurrency exchanges facing increased scrutiny from regulators around the world. Earlier this year, Turkey banned crypto trading outright and Chinese authorities cracked down on Bitcoin mining operations.

As per Seifert’s post: “It is increasingly clear that there needs to be greater dialogue between regulators and industry players if we are going to create a stable environment for innovation.”

Coinbase presently provides services across over 100 nations.