Coinbase: U.S. Lags Behind Global Cryptocurrency Regulation, Coinbase is Working Closely with Other Countries

As the trend of cryptocurrency development continues globally, Coinbase is moving into the "Phase II of its international expansion strategy" without the assistance of the US government. Coinbase has analyzed the progress of regulatory transparency in cryptocurrency among G20 members and major financial centers worldwide, and has once again reminded the US government not to substitute enforcement for regulation, or else risk losing influence over the future of the financial system.

Global Cryptocurrency Regulation Status

83% of G20 members and major financial centers have made progress in cryptocurrency regulation transparency. The result is an emerging global framework that updates the financial system in a way that enhances economic freedom and opportunities.

European Union

The European Union officially passed the Markets in Crypto-Assets (MiCA) regulation in May of this year, providing clear regulatory provisions for the 27 countries in the EU. MiCA is set to come into effect by the end of 2024. Coinbase already holds electronic money licenses throughout the EU, VASP registration in Ireland, cryptocurrency licenses in Germany, and VASP registration in Italy and the Netherlands.

United Kingdom

With the passage of the Financial Services and Markets Bill in Parliament and recent consultation papers from the Treasury, the UK is poised to establish its own cryptocurrency framework, providing crucial legal and regulatory certainty to the market.

United Arab Emirates

The UAE has rapidly become a center for web3 innovation, with 28% of the population owning cryptocurrencies. Abu Dhabi Global Market (ADGM) and Dubai's Virtual Asset Regulatory Authority (VARA) are both developing relevant frameworks, aiming to become global cryptocurrency hubs.

Australia

It was one of the few countries that saw an increase in blockchain job opportunities last year.

Canada

Implemented the Pre-Registration Undertaking (PRU), and Coinbase signed the commitment in March this year, continuing to work with local regulatory authorities to develop a robust cryptocurrency regulatory framework for Canadians.

Hong Kong

Introduced a cryptocurrency regulatory framework that came into effect in June. This signifies a major foothold for digital assets. Officials have announced support for the industry and indicated that the next wave of breakthrough growth may be driven by Web3 and blockchain technology.

Japan

Japan announced plans to create an environment conducive to promoting Web3. The Prime Minister has included Web3 as part of his government's "New Capitalism" economic policy, aiming to address social issues through promoting growth and innovation.

United States

The US has chosen a strategy of enforcing existing rules and new regulations through the courts. While many advanced and emerging economies are moving forward, the US risks losing its influence on the future of the financial system if it continues to sideline itself. Over the past six years, the US has seen a decrease from 40% to 29% in the share of global web 3 developers' work, potentially losing up to 1 million developer jobs in the future. From 2022 to 2023, it is also the country losing the most blockchain job positions.

Coinbase's Second Phase of International Expansion

Coinbase announced the second phase of its "Deep Global" strategy, including:

• Obtaining licenses, registrations, establishing and enhancing operations in markets with clear regulations, including the EU, UK, Canada, Brazil, Singapore, and Australia.
• Expanding more products and services globally, including the recent launch of an international exchange and Coinbase Wallet in Bermuda.
• Establishing closer partnerships with banks and payment providers.
• Ensuring governance and systems comply with local requirements.
• Collaborating with G20 members and major financial centers to help establish consensus and set global standards for our industry.

Coinbase still believes that the cryptocurrency industry and the US government should work together as allies to reform our financial system. However, in the absence of US government participation, Coinbase will continue to collaborate with other governments within their regulatory frameworks to provide the most trusted services and products, making our financial system more efficient and convenient.