Coinbase not Planning to Move Operations Out of US: Brian Armstrong

Brian Armstrong, the CEO of cryptocurrency exchange Coinbase

has assured shareholders that the company has no plans to move its operations out of the US despite regulatory uncertainty. 

During a Q1 earnings call, Armstrong stated that Coinbase is "100% committed" to the US market in the long term. He also expressed confidence in Congress passing a clear set of rules for crypto firms to follow. 

However, Armstrong expressed concern over the Securities Exchange Commission's unpredictable enforcement action, which was evidenced by the regulator serving Coinbase with a Wells Notice in March. The CEO stated that the commission has not been clear about its specific concerns with Coinbase, and it is difficult to predict any potential SEC litigation timeline.

Coinbase filed a legal action in a US federal court seeking to compel the SEC to answer a pending petition since July. The exchange launched Coinbase 

The launch of Coinbase International Exchange (CIE) on May 2 prompted concerns that the company was seeking an escape route from the US. However, CEO Brian Armstrong clarified that the launch does not indicate a shift away from the US market. CIE is now available to customers in 30 countries worldwide, including Singapore, Hong Kong, El Salvador, the Philippines, Thailand, and Bermuda, where it is licensed from.

Armstrong highlighted the regulatory progress made by the European Union, which adopted the comprehensive crypto legislation called Markets in Crypto Assets (MiCA). The legislation creates a single clear rule book for the entire region and is set to enter into effect in mid-2024 or early 2025. Armstrong added that several countries, such as the UK, Singapore, Hong Kong, Australia, Brazil, and D.C., are working on draft bills around stable coins and market structure.

Despite regulatory challenges, Coinbase managed to increase its revenue by 22% and slashed its net income loss from over $475 million to $79 million in Q1.