Coinbase wants to set up an offshore crypto-exchange for derivatives trading

US-based Coinbase is reportedly considering setting up an offshore crypto-trading platform as the regulatory environment in the US becomes increasingly burdensome.

According to Bloomberg, citing sources close to the matter, Coinbase has recently been in discussions with its institutional clients, market makers and investment firms, about its intention to set up an offshore exchange – “far from Coinbase’s core market.”

Founded in San Francisco in 2012, Coinbase is a pioneering cryptocurrency exchange platform. The establishment of an offshore exchange would come amid growing regulatory uncertainty in the United States.

A Coinbase spokesman declined to comment specifically on the discussions. However, he said that in keeping with its mission to increase the global adoption of cryptos, the company is evaluating geographic options and meeting with government officials in high-profile regulatory jurisdictions.

When asked during an earnings call last month whether Coinbase would consider operating an offshore business, Emilie Choi, the company’s chief operating officer, said:

International expansion will continue to be a key part of our operation. Coinbase is encouraged by regulatory developments in the European Union and the United Kingdom, and will continue to invest in Europe and the UK.

On the other hand, the SEC has again suggested that proof-of-stake tokens, such as ETH, should be regulated as securities and several giants, including rival Kraken, have recently been sanctioned.

In addition to regulation, with the fall of Signature and Silvergate, crypto players are now increasingly cut off from the US banking system.

Coinbase CEO Brian Armstrong recently told Bloomberg that the company is “embracing decentralization,” diversifying its revenue streams and calling for greater regulatory clarity for digital assets in the US.