Coinbase CEO Brian Armstrong has called for regulatory clarity on cryptocurrency in the US and UK to prevent firms from seeking refuge in offshore locations, which may offer less oversight and regulation. Speaking at a conference held by Innovate Finance, Armstrong cited the failure of the Bahamas-based FTX exchange as evidence of the need for clearer regulations. Armstrong has praised the UK’s approach to cryptocurrency regulation, but has also noted concerns about banks taking a hardline approach to customers transferring cash to crypto exchanges to “prevent fraud”. The UK’s financial watchdog, the Financial Conduct Authority, has introduced a new registration process for cryptocurrency firms requiring them to comply with anti-money laundering and counter-terrorism financing regulations. In contrast, Bittrex, once the largest digital assets trading platform in the US, has announced it is to leave the country due to regulatory issues. The Securities and Exchange Commission (SEC) had threatened to sue the company in March over alleged violations of investor-protection laws. After working with the SEC to resolve these issues, Bittrex has left the US market. The company has accused SEC Chairman Gary Gensler of attempting to drive cryptocurrency out of the US and warns of the impact of regulatory approaches on innovation. As the crypto sector continues to grow, effective regulation is necessary to protect investors, support innovation and safeguard against abuse.
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