Crypto champ Coinbase plans to operate in UK as Biden 'punishes' tech

America's failure to create a regulatory framework for cryptocurrencies is hitting the industry, said Coinbase CEO Brian Armstrong. Credit: Chris Ratcliffe/Bloomberg

Multibillion-dollar crypto exchange Coinbase is considering moving to the UK as Joe Biden «punishes» fintech companies in the US.

America's failure to create a regulatory framework for cryptocurrencies is hitting the industry and could push Coinbase, which has 110 million users, to move, its chief executive warned.

In a conversation with former Chancellor George Osborne on Tuesday at the Innovate Finance global summit, Brian Armstrong said: «Silicon Valley has a resource curse.»

He accused America of dragging out cryptocurrency regulation and compared the lawmakers' approach with when countries fall behind economically despite abundant natural resources.

Mr Armstrong said: “They have the golden goose…and yet they want to punish these things…they take it for granted and try to extract as much as possible.”

He added: “The UK is our second largest market. We do not see the clarity of regulation in the US. We may need to consider investing elsewhere. Everything is on the table, including the move.”

In an interview with BBC Radio 4 earlier Tuesday morning, Mr Armstrong said that if he could relist his company, he would prefer the London Stock Exchange to New York.

«In a different world, going back, we might have thought it was fair for now,» said Mr. Armstrong.

The UK has an advantage over the US because the Financial Conduct Authority controls both commodities and securities, whereas in America there is a «Mr. Armstrong said turf war» between two separate regulators that have issued conflicting statements.

Coinbase, which is currently the only publicly listed company in the crypto space in the US, may have to go through the US court system to get regulatory clarity, he added.

Comments Mr Armstrong followed a warning from Sir John Cunliff, Deputy Governor of the Bank of England, on Monday that cash would become «less usable» as stores increasingly phase out banknotes.

Bank consults on the introduction of the digital pound and is exploring the possibilities of a system of stablecoins — cryptocurrencies backed by the currency of the central bank — as the use of cash decreases.