Coinbase, a United States-founded cryptocurrency exchange, has made it clear that it has no plans of moving its operations out of US. This was announced on May 5, by the CEO of Coinbase, Brian Armstrong, during an investors' call.

Armstrong expressed his optimism in the US getting crypto regulations right as the country has a strong rule of law. He pointed out that several countries such as Singapore, Hong Kong, El Salvador, Philippines, Thailand and Bermuda – where Coinbase has now obtained a license from – have draft bills in the works around stablecoins and market structure.

Though Armstrong is optimistic, he further conveyed his concern regarding the unpredictable enforcement action of the Securities Exchange Commission (SEC) after Coinbase was served a Wells Notice by the securities regulator in late March. In an attempt to provide greater transparency in the communication with the SEC, Coinbase has recently made public its response to the Wells notice.

In the light of this announcement, Coinbase has also recently launched Coinbase International Exchange (CIE) which offers BTC and ETH perpetual futures settled in USDC with leverage of up to 5x to institutional clients in eligible jurisdictions outside of the US.

Commenting on Coinbase's Q1 results, the revenue was seen to have increased by 22% and the net income loss had reduced drastically to $79 million from $475 million.

Overall, Coinbase remains firm in their stance with regards to the US market, showing faith in the country's capability to come up with appropriate regulations. The prospect of legal recognition of cryptocurrencies in the country remains, while more clarity is delivered with respect to enforcement action by the SEC.



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