Note that Coinbase is indeed the largest cryptocurrency exchange in the US. According to Kaiko analysts, in 2022, the trading platform was able to increase its share among similar platforms in the US market from 40 percent to 50 percent. This was achieved by attracting large traders and significantly reducing transaction fees last September.

Here is the corresponding chart, where Coinbase’s share of the US market is shown in orange.

And while Coinbase is a major cryptocurrency player within the US market, local regulators don’t appreciate this. As it became known at the end of March, the US Securities and Exchange Commission (SEC) sent Coinbase a special notice, which more often than not is a precursor to legal action. The reason for a possible court case would be the company’s steaming platform, which allows users to earn a certain percentage of yield in exchange for locking up crypto-assets. According to the SEC, such a scheme could be characterised as securities, which in this case is allegedly unregistered.


And that's strange enough, because Coinbase went public on April 14, 2021, with an IPO, meaning it conducted an initial public offering and became a public company. This was preceded by a lot of scrutiny - including by the US Securities and Exchange Commission.

It was also brought to the attention of congressmen who attended Gensler's hearing before the House Financial Services Committee this week. They found it odd that in early 2021 the regulator essentially endorsed the feature, and now decided to make it a cause of action.


In any case, Coinbase is clearly not going to wait for reprisals against its own business. Therefore, the exchange is now actively exploring new jurisdictions for more development, including competition with other trading venues.

Where is Coinbase cryptocurrency exchange moving to

Cryptocurrency exchange Coinbase has received a license to operate in Bermuda, which is considered one of the most popular offshore jurisdictions in the world. By doing so, the company confirms its own willingness to expand its own international direction while US regulators are not only unclear on the regulatory framework for operating in the US market, but are also openly hostile to digital assets.

Relevant data has been published on the company’s official blog. Coinbase representatives confirmed in the publication that it has received a licence from the Bermuda Monetary Authority. It is a financial regulator, which was one of the first to implement a full legal framework for digital assets back in 2018.

Fortune sources say Coinbase will launch an offshore derivatives exchange in the territory as early as next week. However, the exchange cannot do so in the US due to local legislation, as perpetual futures and other derivatives are largely prohibited to ordinary Americans without the appropriate trading license.

The launch of an offshore exchange will allow San Francisco-based Coinbase to compete more effectively with Binance and other world-renowned trading platforms. The company will also diversify its revenue sources and be relatively safer in the event of continued “legal terrorism” by the US Securities and Exchange Commission.

Despite what is happening, experts doubt Coinbase will be able to completely exit the US market – at least in the near future. Still, for the cryptocurrency exchange it is the main market, which means such an action would be a shot in the foot.


Coinbase itself has described the strategy as a "hike in breadth and depth". In other words, the company wants to conquer new markets and operate from jurisdictions with an adequate approach to digital assets.


We have clarified the current data: today Coinbase has the number one market share among dollar-enabled trading platforms. It stands at 37.27 per cent, while Kraken comes in second with 17 per cent.

But in the ranking of platforms without support for dollar payments, Binance is firmly in first place. Its market share is 58.55 percent, which shows the solid position of this trading platform.

As we have already noted, Coinbase is unlikely to leave the US market. However, in any case, this decision will be a signal to the officials, who held a meeting with SEC Chairman Gary Gensler the day before and criticized him. Obviously, what is happening will not benefit Gensler’s already bad reputation.


We believe that Coinbase's actions clearly coincide with the predictions of experts who commented on the current policy of American regulators. The outright hostility of the latter will lead to an outflow of businesses and talent outside the United States. This, in turn, will affect both the shortfall of additional revenue for the country's budget and its leading position in finance. Obviously, many politicians will not approve of this, which means that the SEC could be in trouble - and soon.