# Crypto firms will develop ‘offshore’ without clear US rules, Coinbase chief says Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-19 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Crypto Firms Warned of Developing 'Offshore' Amid Meta Description: Learn why US and UK must clarify crypto regulations to prevent firms from seeking refuge in offshore havens, as highlighted by Coinbase chief Brian Armstrong. URL: https://financedigest.com/crypto-firms-will-develop-offshore-without-clear-us-rules-coinbase-chief-sayshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-18t192106z2lynxmpej3h0b9rtroptp4coinbase-stocks-1736814127066-compressed.jpg) # Crypto firms will develop ‘offshore’ without clear US rules, Coinbase chief says By Tom Wilson and Elizabeth Howcroft LONDON (Reuters) -The U.S. and Britain should make their rules for the crypto [industry much clearer to prevent](https://www.financedigest.com/insuring-the-industry-with-predict-and-prevent.html "Insuring the industry with predict and prevent") firms from developing in “offshore havens”, the chief of U.S. [crypto exchange Coinbase Global](https://www.financedigest.com/brave-new-coin-launches-global-classification-standard-for-crypto-assets.html "Brave New Coin Launches Global Classification Standard for Crypto Assets") Inc, Brian Armstrong, said on Tuesday. The failure last year of the Bahamas-based FTX exchange has highlighted the importance of major economies developing clear crypto regulations, Armstrong said at a conference held by the Innovate [Finance industry](https://www.financedigest.com/holding-a-mirror-up-to-the-finance-industry-on-diversity-equity-inclusion-dei.html "Holding a mirror up to the finance industry on Diversity, Equity & Inclusion (DEI)") body. This is the [reason why we need](https://www.financedigest.com/three-reasons-finance-professionals-need-get-grips-big-data.html "Three reasons why finance professionals need to get to grips with big data") clarity about legislation and regulation onshore because if the UK doesn’t have this, if the U.S. doesn’t have this, these firms are going to be built in offshore havens,” Armstrong said. While some major economies such as the [European Union have drafted bespoke crypto rules](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document"), the sector is still mostly unregulated in the United States. U.S. regulators and law enforcement have launched a broad crackdown on crypto [companies this year](https://www.financedigest.com/companies-that-dont-upgrade-their-financial-processes-this-year-will-get-left-behind.html "Companies that don’t upgrade their financial processes this year will get left behind"), aimed at illegal offerings and failures to comply with rules designed to prevent illicit activity. In March the U.S. [Securities and Exchange](https://www.financedigest.com/vaultbank-exchange-launches-in-beta-opening-security-tokens-for-trading.html "Vaultbank Exchange Launches in Beta, Opening Security Tokens for Trading") Commission threatened to sue Coinbase over certain products. Still, Britain’s finance ministry laid out in February its first set of rules to regulate crypto, with its [financial watchdog calling in March for tough rules](https://www.financedigest.com/why-a-rules-management-system-can-untie-financial-services-hands.html "Why a rules management system can untie financial services’ hands") to “detoxify” the sector. Armstrong in a tweet on Monday that [Britain was “moving](https://www.financedigest.com/protecting-the-unbanked-as-we-move-to-a-cashless-britain.html "Protecting the unbanked as we move to a cashless Britain") fast on sensible crypto regulation, adding, without elaborating, that he was “excited to keep investing in the UK. Still, he voiced concerns over [banks in Britain](https://www.financedigest.com/britain-urges-banks-to-offer-mortgage-flexibility-in-cost-of-living-crisis.html "Britain urges banks to offer mortgage flexibility in cost-of-living crisis") taking an increasingly hardline approach to customers transferring cash to crypto exchanges in an effort to stamp out fraud. Top UK lender NatWest, for instance, imposed new limits in March on customer transfers to cryptocurrency exchanges, seeking to [protect consumers from what it called](https://www.financedigest.com/emergency-call-services-telcos-urge-eu-to-protect-telecoms-networks-from-power-cuts.html "Emergency call services, telcos urge EU to protect telecoms networks from power cuts") “crypto-criminals. Some UK [banks are blocking fiat payments](https://www.financedigest.com/risk-of-uk-balance-of-payments-crisis-under-truss-is-rising-deutsche-bank-warns.html "Risk of UK balance of payments crisis under Truss is rising, Deutsche Bank warns") to crypto companies which is not ok,” Armstrong tweeted, referring to traditional currencies. Good [fraud controls](https://www.financedigest.com/travelport-partners-with-aci-worldwide-to-launch-intelligent-payment-fraud-controls-for-airline-industry.html "Travelport partners with ACI Worldwide to launch intelligent payment fraud controls for airline industry") make sense, a blanket ban does not (and is likely not lawful). (Reporting by Tom Wilson and Elizabeth Howcroft, Louise Heavens) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---