Now that the US regulatory environment is deteriorating, companies are actively looking for new banking partners.

Top American cryptocurrency exchange Coinbase is currently exploring options for creating a new cryptocurrency trading platform.According to Bloomberg reportthe platform will be located outside the United States, and Coinbase has already started talking to institutional investors about the move.

The exchange has also yet to decide on a specific location to use for the proposed trading platform, according to the report. However, the decision appears to be in line with recent U.S. regulators’ aggressive approach to the cryptocurrency industry.

Increased regulatory measures in the United States

The sector has come under increased scrutiny following multiple crashes in the crypto industry in early 2022. However, with the collapse of cryptocurrency exchange FTX in November, regulatory measures have expanded severalfold. This was a critical situation that was contagious throughout the cryptocurrency industry and beyond.

Add to that the recent failures of prominent financial institutions such as Silvergate Bank, Signature Bank and Silicon Valley Bank, all of which were cryptocurrency backers. Their sudden failure has caused even more concern, and now MPs may be fed up.

Interestingly, however, this mindset is not unique to Coinbase. There are several other crypto-based companies in the US currently looking to set up in other jurisdictions. Now, with the US regulatory environment deteriorating, banks are actively looking for new banking partners.

To put the above statement into perspective, Switzerland-based Sygnum and Liechtenstein-based Bank Frick have seen an increase in requests to open accounts from offshore companies. As expected, most companies are based in the United States.

Coinbase Still Keen on Global Crypto Adoption

Meanwhile, despite the current situation, Coinbase remains dedicated to its purpose of ensuring global crypto adoption. A company spokesperson said the company is currently exploring geographic options. In addition, Coinbase has also held meetings “with government officials in highly regulated jurisdictions.”

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Mayowa Adebajo

Mayowa is a crypto enthusiast/writer whose conversational personality is evident in his writing style. He is a strong believer in the potential of digital assets and repeats this at every opportunity. He is a reader, researcher, astute speaker, and budding entrepreneur. But outside of cryptocurrencies, Mayowa’s fanciful pastimes include discussing football and world politics.

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