Coinbase Taps National Security Experts

In
response to the heightened regulatory scrutiny surrounding the cryptocurrency
industry, Coinbase has announced the addition of four national security experts
to its global advisory council. The move underscores the industry’s growing
need for a deeper understanding of regulatory challenges, particularly in the
wake of the collapse of Sam Bankman-Fried’s FTX exchange.

The
new council members, Mark Esper, Stephanie Murphy, Frances Townsend, and David
Urban, will provide insights and guidance to Coinbase’s executive leadership
team. Esper, a former United States Defense Secretary, brings understanding of
security and government operations to the council. Murphy, a former national
security specialist for the defense department, contributes her expertise in
defense and national security matters.

Townsend,
who previously served as Counterterrorism and Homeland Security advisor to
former President George W. Bush, offers experience in addressing critical security
concerns. Urban, formerly a managing director at BRG Group, where he oversaw
corporate affairs for ByteDance, brings a comprehensive understanding of the
technology and corporate landscape.

Coinbase’s
decision to strengthen its advisory council with these experts underscores the
significance of addressing regulatory uncertainties in the crypto space. The
council will play a role in examining the potential consequences of regulatory
ambiguities, both in the short and long term, on the United States’ economic
and national security interests.

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Coinbase strengthens its global advisory council https://t.co/jA8rOxGUmh pic.twitter.com/Q5ien2Ve5C

— Reuters (@Reuters) November 7, 2023

Coinbase
Selects Ireland as Primary Regulatory Hub amid US Challenges

Amid
tightening regulatory measures in the United States and growing uncertainty
about the future of the cryptocurrency market in the country, crypto exchange Coinbase
has made a strategic decision to establish its primary global regulatory hub in
Ireland, Finance Magnates reported.

As
Coinbase grapples with increasing regulatory challenges in the United States,
it has sought out alternatives to ensure its continued global presence and
compliance with evolving international regulations. The forthcoming
implementation of the European Union’s (EU) Markets in Crypto-Assets (MiCA)
regulations, slated to become effective at the end of the previous year.

By
securing a license from the Central Bank of Ireland, Coinbase aims to
leverage MiCA
regulations to offer its services to all EU customers under
“passporting” rights. This strategic move opens up access to a
customer base of 450 million people across the EU.

Coinbase
expresses confidence in securing a license from Ireland’s central bank,
ensuring its readiness when MiCA regulations are fully enforced. Nana
Murugesan, the Vice President of Coinbase’s International Operations, affirmed
the company’s preparedness for the regulatory transition in an interview with
CNBC.

The
Markets in Crypto-Assets (MiCA) regulations, officially approved in May 2023,
introduce a standardized regulatory framework for digital assets across the
European Union. The full implementation of MiCA is anticipated in December
2024, with a potential transition period extending until July 2026, subject to
individual EU member states’ considerations.

While
Europe is working to create a conducive regulatory environment for
cryptocurrency businesses through MiCA, the United States has taken legal
action against some of the largest cryptocurrency exchanges. In June, both
Binance and Coinbase faced legal challenges.

The Securities and Exchange
Commission (SEC) accused Coinbase of operating an unauthorized trading
platform that offered unregistered digital asset securities. Additionally, the
SEC alleged that Coinbase had conducted a staking-as-a-service program without
proper authorization.