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Coinbase is the latest US crypto firm to move to Bermuda amidst a "punishing" US regulatory environments

May 14, 2023

U.S. crypto firms are increasingly turning to Bermuda in the wake of a challenging regulatory environment in the US. XBTO was one of the first to seek licensing in Bermuda, recognizing its forward-thinking regulatory culture. Bermuda's established foundation of risk-aversion from the insurance industry aligns with the need for crypto to mature and reshape the financial system and Bermuda's digital asset framework, enacted in 2018, has since attracted other companies including Block and Circle.

The move towards Bermuda comes as U.S. regulators crack down on crypto firms while Congress moves slowly on establishing new rules. Coinbase's recent license acquisition in Bermuda has generated interest, as the SEC targets crypto companies and Coinbase battles legal challenges. While offshore relocation offers short-term benefits, serving the U.S. market requires collaboration with U.S. regulators and XBTO remains committed to fostering collaboration and navigating the regulatory landscape.

XBTO, a pioneer in the cryptocurrency industry since its founding in 2015, was early to recognize the value in the  forward-thinking approach of Bermuda's regulatory culture, which is built upon a foundation of risk-aversion developed from the insurance industry. Bermuda’s BMA and their dedicated DABA digital assets framework are well aligned to support more of the digital assets participants as they run into difficulties with the lack of regulatory clarity and “regulation through enforcement” practice in the US.This alignment of values with the BMA has been crucial for XBTO and other digital assets institutions as they strive to build the maturity of the cryptoasset economy and reshape the world's financial systems.

Read more about Coinbase coming to Bermuda here.

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