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Coinbase Gets An Invitation To Operate In Hong Kong Amid US Troubles

Twitter icon  •  Published il y a 10 mois  •  Hassan Maishera

Crypto exchange Coinbase has received an invitation from a Hong Kong lawmaker to set up operations in the region.

TL;DR

  • Hong Kong lawmaker has extended an invitation to Coinbase to operate in the region.

  • Coinbase has been under fire from the US SEC in recent months.

Coinbase Invited To Operate In Hong Kong

A Hong Kong lawmaker invited cryptocurrency exchanges, including Coinbase, to come and register in the region. 

This latest development comes after the Hong Kong Securities and Futures Commission (SFC) began accepting applications for crypto trading platform licenses earlier this month.

According to the law, crypto exchanges registered with the SFC can provide services to retail customers in Hong Kong. However, they will need to comply with the rules that include the prohibition of incentives such as airdrops. 

Hong Kong legislative council member Johnny Ng extended the invitation to Coinbase and other crypto exchanges via Twitter on Sunday, stating that;

“I hereby offer an invitation to welcome all global virtual asset trading operators, including Coinbase, to come to HK for the application of official trading platforms and further development plans.”

While responding to this latest development, a Coinbase spokesperson said the crypto exchange is committed to partnering with regulatory agencies across the United States and in other parts of the world. 

The invitation comes as the crypto exchange and its rival Binance face regulatory challenges in the United States. Binance and Coinbase were recently sued by the US SEC for allegedly violating federal securities laws in the United States.

Coinbase is already expanding its base outside the United States. In April, Brian Armstrong, Coinbase’s CEO, said the company could consider relocating its headquarters from the United States if the unclear regulatory stance in the country continues. 

Tom Duff-Gordon, Vice President of International Policy at Coinbase, recently revealed that the company is pushing to expand globally. 

The crypto exchange is trying to build in Abu Dhabi and Canada and is also waiting for approval to register its services in Singapore. 

Despite the challenges in the US, Duff-Gordon said Coinbase would not completely abandon operations in the country. He stated that;

“The easiest thing for us to do would be to cut and run, but that's not what we're doing. We want to represent the industry to stand up and to fight for regulatory clarity in the U.S.”

Coinbase and Binance are the two largest cryptocurrency exchanges in the world in terms of daily trading volume.

 

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.