Coinbase is looking into the possibility of setting up a trading platform outside the United States. The exchange is looking to ink some partnerships with big names in the industry to achieve this aim. According to the report, the new platform would be for institutional clients not living in the United States, where its headquarters is located.
The platform wants to service foreign clients outside the US
According to the report, Coinbase is taking this path due to the crackdown on crypto exchanges across the U.S by regulatory agencies. The firm noted that most of these agencies and lawmakers are pointing accusing fingers at exchanges as one of the biggest influences in the fall of the financial institutions that have rocked the country in recent weeks. These agencies have been targeting a series of crypto companies for the kinds of services that they offer to clients.
A typical example was the clampdown on Kraken for offering staking services to users. In reaction to the news, Coinbase decided to reiterate that it would not stop its service but would increase the rewards that users would get from it. However, the exchange clarified that it would no longer award the reward itself as traders would now earn directly from the staking pools.
Coinbase unmoved over the crackdown on staking programs
There have been reports that the move by Coinbase could draw the ire of the regulator as it remains unclear how the exchange would attract sanctions. Regarding the Kraken issue, the regulators mentioned that users were no longer in control of their tokens. This way, they could not do anything within their control regarding their funds.
Although nothing is concrete yet, things are expected to develop so fast considering the issue of the banking sector. Coinbase confirmed that its new platform would have a base of operation where services would be carried out from. However, it remains unclear which country the exchange wants to cite this new platform.