• Coinbase, America’s largest crypto exchange, is reportedly in talks to set up a new digital asset trading platform overseas that can offer access to global clients.
• The discussions have yet to establish a precise location for the global marketplace, however the exchange has already made contact with market makers about how to connect to it.
• The talks occur as regulators forced Silicon Valley Bank and Signature Bank – two of the nation’s biggest crypto banking partners – to close their doors over the weekend.
Coinbase Moving Abroad?
As U.S. regulators press their attack, Coinbase may be establishing an overseas venue for servicing global clients. The exchange is reportedly in talks to set up a new digital asset trading platform outside of the United States that would provide access to customers around the world.
Location of Exchange
The discussions are confidential and it is still unclear where exactly this new platform will be located. However, Coinbase has already made contact with market makers regarding how they can connect with it.
This news comes at a time when U.S regulators are increasing their pressure on cryptocurrency companies. Last weekend, Silicon Valley Bank and Signature Bank – two of the country’s biggest crypto banking partners – were both forced by regulators to shut down operations. This closure may put further strain on companies like Coinbase who had recently switched from Silvergate bank over to Signature Bank earlier this month for its services. Some reports suggest that former crypto clients of Silvergate have been retreating to Swiss banks this week due to these issues..
Coinbase Chief Operating Officer Emilie Choi commented on these developments during an earnings call last month saying “International expansion is going to continue to be a very core part of how we operate.“ This statement indicates that despite recent difficulties, Coinbase plans on continuing its international growth strategy in order to remain competitive in today’s rapidly changing industry landscape..
It appears that Coinbase is taking serious steps towards expanding into new markets abroad amidst regulatory pressures in the United States closing some major cryptocurrency banking partnerships such as Silvergate and Signature Banks within just one week’s time frame.. Ultimately, only time will tell what happens next for this company but all signs point towards further international growth in order for them stay ahead of competitors..
• Reports say that US crypto exchanges could face a class action lawsuit due to illegal sales of unregistered securities.
• Leading securities lawyer Tom Grady is preparing potential litigation against America’s largest crypto companies, including Coinbase, Robinhood and Kraken.
• Congress has yet to officially classify digital assets as securities, so regulators such as the SEC have been taking things into their own hands.
US Crypto Exchanges Could Face Class Action Lawsuit: Reports
It appears that the war on crypto in America is heating up, with reports indicating that exchanges could be the next targets for regulatory wrath. According to a March 9 Fox Business report, leading securities lawyer Tom Grady is preparing for potential class action litigation against major American crypto companies, including Coinbase, Robinhood and Kraken.
Allegations of Illegal Sales of Unregistered Securities
Grady believes these companies may have violated the law by selling unregistered securities to retail investors, who may now be entitled to recover their losses from these purchases. In a press release shared with the outlet, Grady stated: „We believe Coinbase, Robinhood, and other exchanges have violated the law.“
Digital Assets Yet To Be Officially Classified
The issue of whether or not digital assets should be classified as securities remains unresolved – Congress has yet to make an official ruling on this matter. Consequently, regulators such as the SEC have been taking matters into their own hands in order to protect retail investors from any potential scams or frauds that may arise in this sector.
Class Action Lawsuit Could Have Far-Reaching Implications
Should a class action lawsuit be successful against these exchanges it could have far-reaching implications for the entire cryptocurrency industry in the United States – something which many would argue is already under threat from government regulation.
Seeking Clients Who Lost Money From Crypto Investments
As well as preparing for possible class action litigation against America’s top crypto companies, Grady also seeking out clients who have lost money through investments made on these platforms in order to represent them in court if necessary.
• Arthur Hayes, co-founder of BitMEX, published an essay on Thursday discussing potential situations that could lead to a global oil supply shortage.
• These scenarios include Iran closing the Strait of Hormuz, large oil producers materially reducing their production, and critical oil/gas infrastructure taken offline due to sabotage.
• Such a scenario would cause central banks across the world to return to a market-friendly loose monetary policy and make Bitcoin’s price skyrocket as a result.
Oil Supply Shortage
Arthur Hayes, co-founder of BitMEX published an essay on Thursday outlining „realistic potential situations“ that could lead to an oil supply shortage across the globe given current geopolitical tensions. The former CEO argued that such a scenario would cause central banks across the world – including the Federal Reserve – to return to a market-friendly loose monetary policy and make Bitcoin’s price skyrocket as a result.
Hayes described three possible futures that could lead to an oil supply shortage: Iran escalating its conflict with Israel/ Saudi Arabia by closing the Strait of Hormuz, large oil producers (Russia, Saudi Arabia, etc) materially reducing their production, or critical oil/gas infrastructure being taken offline due to deliberate sabotage. According to Hayes, the first scenario is most likely since Iran’s Uranium enrichment could motivate Israel and Saudi Arabi to take military action against them. By closing the Strait of Hormuz, 17.3 million barrels per day would be removed from global markets making marginal costs per barrel extremely high.
Such incidents would have catastrophic economic impacts for countries dependent on imported energy resources such as Japan and India. Additionally it would have serious implications for transportation industries in Europe and North America who rely heavily on gasoline powered vehicles and diesel fuel for commercial transport services such as shipping companies or airlines which are already struggling with rising fuel prices dueto COVID-19 travel restrictions.
In order to combat these economic repercussions caused by soaring energy prices in international markets central banks around the world may be forced into returning towards more accommodative policies such as quantitative easing (QE). This type of policy aims at increasing money supply through buying bonds from financial institutions in order maintain low interest rates while attempting stimulate economic activity through increased liquidity in financial markets which can ultimately increase inflationary pressures causing currencies like US dollars devalue significantly over time if left unchecked for extended periods of time .
Bitcoin Price Surge
The influx of new money into financial markets has caused investors flock away from traditional investment classes such as stocks bonds or commodities towards digital assets which provide investors with protection against inflationary pressures associated with QE programs . As result cryptocurrencies like Bitcoin tend experience significant gains when central bank policies become increasingly accommodative since they are not subject same regulatory constraints normal fiat currencies are subjected too .