Coinbase doubles down on global expansion

Coinbase, the largest U.S. cryptocurrency exchange by traded volume, has announced its 8-week expansion drive "Go Broad, Go Deep" which aims to expand its operations in countries across 6 continents. This move clearly demonstrates that Coinbase sees future growth opportunities outside of the U.S.

A forward-looking initiative firstly announced in 2022, Coinbase has rolled out various phases of it's Go Broad, Go Deep strategy throughout 2023.

Based in San Francisco and listed on Nasdaq, (NASDAQ:COIN), Coinbase offers a wide range of services including retail and professional trading platforms, an NFT marketplace, wallet and custody services, as well as APIs for developers and merchants to build applications and accept payments in digital currencies. Its brand recognition has made it popular among both retail and institutional cryptocurrency investors.

Despite its efforts to push for clearer regulations, Coinbase has become an outspoken critic of U.S. regulators, especially the Securities and Exchange Commission (SEC), which has focused on regulatory enforcement instead of providing the much-needed regulatory clarity that crypto firms, including Coinbase, are seeking.

As the U.S. works on clarifying its regulatory position on crypto, other jurisdictions are providing the clarity and certainty needed to lead the next wave of products, services, and project innovations in the digital economy. Therefore, it is not surprising that Coinbase is expanding its operations globally to take advantage of these opportunities. In the words of Coinbase Co-CEO, Brian Armstrong “we see [regulation] as a business enabler.”

So, which countries has Coinbase identified as top picks and why?

Coinbase has named several key developments in various countries which make it easier for people to access the crypto economy, and they are excited about these opportunities. From the United Kingdom's ambitious plans to establish London as an international hub for crypto, to the European Union's ground-breaking MiCA regulation, set to enter into force across the 27 EU member states; countries are positioning themselves as leaders in the crypto space.

Brazil is leveraging its Pix payment system to encourage banks to hold digital assets, while Dubai is seeking to be a global hub for crypto and blockchain, actively attracting crypto projects and global talent. Australia and Singapore are working to balance innovation and consumer protection, while China has approved Hong Kong's consultation on a new crypto-licensing regime designed to allow crypto innovation to thrive on the island.

Switzerland has become a hub for crypto and blockchain technology, with a concerted effort to nurture the crypto industry. Countries like Bermuda with long-standing and globally recognized financial and insurance regulatory regimes have reiterated their ambition to become crypto hubs, while Japan is refining its policies around DAOs, stablecoins, and NFTs.

North America, led by Canada, is establishing a consistent and balanced regulatory framework, launching targeted consultations on crypto-assets as part of the review on the digitalization of money. At the global level, the G20 countries are championing the development of a global set of standards on crypto assets and stablecoins for agreement in Q3 2023.

With each country's unique approach and commitment to the crypto space, the future of digital assets is bright and promising.

Should Coinbase's decision to focus on expansion outside of the U.S. matter to you?

As a digital assets' investor, Coinbase's decision to expand outside of the U.S. is significant for several reasons. Cryptocurrency is inherently risky, whether it's due to the volatile price movements, or the safety of the platforms you use. However, as the crypto market matures, developers are designing responsible solutions and offering innovative services to address these issues, propelling the industry to grow beyond what is currently available.

But these developers need clear regulatory guidelines to work within. If they cannot obtain clarity in one jurisdiction, they will look elsewhere and offer their products to more receptive markets that offer better protection. This means that if all the good ideas are moving abroad, there will be a range of new products you cannot access, and you will miss out on opportunities.

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Innovation follows the talent, so it's important that the best minds have the freedom to develop their ideas within a supportive environment. By expanding outside of the U.S., Coinbase is tapping into new markets and encouraging the global growth of the cryptocurrency industry.