Coinbase CEO Brian Armstrong has warned that cryptocurrency companies will be forced to move offshore if governments fail to provide clear regulatory guidelines. Speaking at a conference in London on Tuesday, Armstrong expressed concern that without clarity on regulations in “onshore” locations such as the United States and Britain, crypto firms will be built in offshore havens.
Armstrong’s comments come in the wake of the failure of the Bahamas-based FTX exchange, which went out of business last year due to unclear regulations. He stressed the need for regulatory clarity in order to prevent similar failures in the future.
According to the Reuters report, Armstrong reflects a growing concern within the crypto industry about the lack of clear regulations governing cryptocurrencies. With cryptocurrencies becoming increasingly mainstream, there is a growing consensus that clear guidelines are needed in order to ensure the long-term stability and success of the industry.
The current regulatory state
The lack of clarity on regulations has already led to some high-profile failures within the industry, with FTX being just one example. In order to prevent further failures, Armstrong is calling on governments to provide clear guidelines on cryptocurrencies and their regulation.
Armstrong’s warning comes at a time when many countries are grappling with the issue of how to regulate cryptocurrencies. While some countries, such as Japan and Australia, have already implemented regulatory frameworks for cryptocurrencies, others have yet to do so.
It remains to be seen whether Armstrong’s warning will be heeded by governments around the world. However, it is clear that the lack of clear regulations is a major concern within the crypto industry, and that this issue will need to be addressed if the industry is to continue to thrive in the years ahead.
This comes at a time when the regulatory saga in the United States seems to be heating up with Coinbase itself being a target of the SEC which regards its staking services as security. However, Coinbase decided to present a defense appeal on the allegations claiming that their staking services did not meet the qualifications of security.
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