Crypto Firms Start Looking Abroad as U.S. Cracks Down

The wave of government enforcement against cryptocurrency companies is beginning to remake the industry.

Coinbase, the largest crypto exchange in the United States, has opened a business in Bermuda. Gemini, a rival firm based in New York, is seeking a license in the United Arab Emirates. And Bittrex, an exchange in Seattle, has shut down its U.S. operations.

After years of trying to shape federal regulation in the United States, a growing number of American crypto companies — particularly the exchanges where customers buy and sell digital tokens — are exploring plans to build their businesses abroad. They are expanding into new markets and weighing the possibility of leaving the country entirely.

The moves are a response to a growing law enforcement crackdown that has made the United States one of the strictest regulators of crypto in the world. On Tuesday, the Securities and Exchange Commission filed a long-anticipated lawsuit against Coinbase, arguing that the exchange was marketing securities without the proper registration. A day earlier, the S.E.C. sued the international crypto exchange Binance, seeking to bar its founder from the U.S. securities market.

Like this post? Please share to your friends: