As per the recent reports, leading cryptocurrency exchange Coinbase revealed the establishment of an advisory group composed of numerous former US politicians and industry professionals.
Coinbase Unveils the “Global Advisory Group”
Coinbase announced in a blog post on May 12 that its Global Advisory Council will help the company manage the “increasingly complex and evolving” crypto scene throughout the world and the United States.
Former Pennsylvania Senator Patrick Toomey, former Ohio Representative Tim Ryan, former New York Representative Sean Patrick Maloney, and others will serve on the advisory board and counsel the corporation on cryptocurrency policy.
The council now has only five members, according to Coinbase, with hopes to expand “with a bipartisan group of leaders with deep regulatory expertise.”
A Plan to Work with the US Regulators?
Jay Clayton, the former chief of the Securities and Exchange Commission (SEC), serves in a distinct board for the exchange, helping the corporation on its regulatory strategy.
Many people had been speculating that the American cryptocurrency exchange would be considering transferring its operations outside of the nation due to the murky legal backdrop. The statement came as a result of their speculation.
Disputes with the SEC
Following the Wells notice the exchange received in March, which prompted Coinbase to submit a request to push the SEC to explain its position on digital currencies, the exchange is now engaged in legal proceedings with the SEC.
Coinbase has faced inspections from regulators and legal disputes with US officials over the years. The SEC threatened to sue Coinbase in 2021 over its intended crypto lending assistance, citing security for investors concerns.
Coinbase Plans to Expand Operations Outside the US
In addition, regulators have punished Coinbase for neglecting to keep up with anti-money laundering (AML) and know-your-customer (KYC) rules. Coinbase was fined $100 million by the Department of Financial Services (DFS) for suspected AML breaches.
Companies frequently prepare for possible challenges, whether they are market-related, regulatory changes, or broader economic situations. The company plans to create an offshore derivative trading platform in Bermuda to prepare for these problems. Notably, the exchange’s choice may be influenced by recent financial crises in the United States.