- Coinbase CEO Brian Armstrong has threatened to leave the U.S. if regulations don’t become clearer
- Armstrong told the Innovate Finance industry body yesterday that other firms may move to “offshore havens” to protect themselves
- His talk came just hours after SEC Chair Gary Gensler was grilled over the U.S. approach to crypto regulation
Coinbase CEO Brian Armstrong has threatened to take Coinbase out of the U.S. if regulations don’t become clearer, and has warned that other businesses in the U.S. and UK might do the same. Speaking at a conference held by the Innovate Finance industry body on Tuesday, Armstrong warned that crypto firms could find themselves moving offshore, leaving the U.S. and UK to miss out on the tax windfall of an expanding digital asset market. Armstrong was speaking just hours after SEC Chair Gary Gensler was savaged over the agency’s scattergun approach to crypto regulation.
“Offshore Havens” Beckon, Warns Armstrong
Armstrong was discussing the opaque crypto regulations in Britain and the U.S. when he warned that firms in these regions could seek protection from regions in the world where they would be welcomed, rather than made to jump through constantly moving hoops:
This is the reason why we need clarity about legislation and regulation onshore because if the UK doesn’t have this, if the U.S. doesn’t have this, these firms are going to be built in offshore havens.
Armstrong was also in the UK to meet with UK Economic Secretary and City Minister Andrew Griffith, which he tweeted resulted in a “great meeting”, adding that the UK was at least going about things in the right way:
Great meeting today with UK Economic Secretary and City Minister @griffitha.
The UK is moving fast on sensible crypto regulation to both drive economic growth AND consumer protection. Excited to keep investing in the UK. 🇬🇧 pic.twitter.com/478PQSLmDe
— Brian Armstrong (@brian_armstrong) April 17, 2023
Armstrong did however note that “some UK banks are blocking fiat payments to crypto companies which is not ok”, adding that the kinds of blanket bans already witnessed are unnecessary and “likely not lawful” and that “further education and collaboration” is needed to overcome this. He also noted flaws in the UK’s Financial Promotion regime for financial institutions:
A few points we shared:
1. Some UK banks are blocking fiat payments to crypto companies which is not ok.
Good fraud controls make sense, a blanket ban does not (and is likely not lawful). Needs further education and collaboration.2. The Financial Promotion regime goes too far…
— Brian Armstrong (@brian_armstrong) April 17, 2023
The U.S. and Britain have both had their feet down on the crypto regulation accelerator in recent years, but the situation is more complex in the UK where the government has said it wants the country to become a crypto hub at the same time as the regulator, the Financial Conduct Authority, is working with banks to prevent access to the system.
