Coinbase Global Inc.'s CEO, Brian Armstrong, has called for clearer cryptocurrency regulations in the United States and Britain to avoid the development of firms in "offshore havens." Armstrong's comments came during a conference organized by Innovate Finance, an industry body, and were prompted by the failure of the Bahamas-based FTX exchange last year.
Armstrong emphasized the importance of major economies establishing clear regulations for the crypto industry, saying, "This is the reason why we need clarity about legislation and regulation onshore because if the UK doesn't have this, if the US doesn't have this, these firms are going to be built in offshore havens."
Although the European Union has drafted specific crypto regulations, the sector remains largely unregulated in the United States. US regulators and law enforcement have initiated a widespread crackdown on crypto companies in 2023, focusing on illegal offerings and non-compliance with rules designed to combat illicit activities. In March, the US Securities and Exchange Commission threatened to sue Coinbase over certain products.
Meanwhile, Britain's finance ministry introduced its first set of crypto regulations in February, with the country's financial watchdog calling for stringent rules in March to "detoxify" the sector. Armstrong tweeted on Monday that Britain was "moving fast on sensible crypto regulation," adding that he was "excited to keep investing in the UK."
However, Armstrong expressed concern about UK banks' increasingly strict approach toward customers transferring money to crypto exchanges in an effort to eliminate fraud. For example, in March, top UK lender NatWest (NWG.L) implemented new limits on customer transfers to cryptocurrency exchanges in an attempt to protect consumers from what it referred to as "crypto-criminals."
Armstrong criticized the banks' actions in a tweet, stating, "Some UK banks are blocking fiat payments to crypto companies which is not ok." He went on to say, "Good fraud controls make sense, a blanket ban does not (and is likely not lawful)." The Coinbase CEO's comments underline the need for clear and sensible regulations in major economies to ensure the growth and stability of the burgeoning crypto industry.
