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Hong Kong Lawmaker Invites Coinbase to Apply to Operate in Region Amid U.S. SEC Crackdown

CoindeskCoindesk2023/06/13 08:47
By:Camomile Shumba

The company is excited to expand globally and wants to build in Abu Dhabi, Canada and Singapore, Coinbase's Vice President of International Policy said.

Hong Kong skyline (Ruslan Bardash/Unsplash)

A Hong Kong lawmaker invited global virtual asset trading operators, including crypto exchange Coinbase, to come and register in the region.

Hong Kong's Securities and Futures Commission (SFC) began accepting applications for . Crypto firms which get registered under this license will be able to serve retail customers in the country and will need to comply with rules that prohibit crypto incentives like .

“I hereby offer an invitation to welcome all global virtual asset trading operators including to come to HK for application of officia l trading platforms and further development plans,” Hong Kong legislative council member Johnny Ng on Saturday.

“Coinbase is dedicated to partnering with high-bar regulators across U.S. and non-U.S. jurisdictions,” a Coinbase spokesperson told CoinDesk, responding to the tweet.

Ng’s invite comes amid a U.S. crackdown on crypto exchanges like and , which have both been sued recently by the U.S. Securities and Exchange Commission (SEC) for allegedly violating federal securities laws.

Brian Armstrong, Coinbase’s CEO, said in April that his company of the U.S. if there continues to be no regulatory clarity around how crypto is treated, .

Coinbase is now looking to expand globally, Tom Duff-Gordon, Vice President of International Policy at Coinbase, said in an interview.

“Coinbase is really excited to be expanding overseas,” Duff-Gordon said.

The company is trying to , and is waiting for a full license in Singapore, where it already has in-principle approval, Duff-Gordon added.

While the company has been operating in the U.K. through CB Payments Limited, which has been authorized and regulated by the Financial Conduct Authority as an electronic money institution, the company hopes to apply for authorization under the U.K.’s once that is finalized, Duff-Gordon said.

While international expansion is a key focus, Coinbase is not ready to give up on the U.S., according to Duff-Gordon.

“The easiest thing for us to do would be to cut and run but that's not what we're doing,” Duff-Gordon said. “We want to represent the industry to stand up and to fight for regulatory clarity in the U.S.”

UPDATE (June 13, 8:47 UTC): Adds Coinbase has approval in principle in Singapore in ninth paragraph.

Edited by Toby Leah Bochan.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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