Coinbase, America’s largest crypto exchange, has been licensed in Bermuda, the company has announced.

It stated: “Coinbase Bermuda Ltd has obtained a Class F Licence under the Digital Asset Business Act from the Bermuda Monetary Authority.”

The announcement has already led to speculation of a corporate move away from the United States after the chief executive hinted at such earlier this week.

It also led to a welcoming message from David Burt, the Premier and Minister of Finance, on his Twitter account.

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The Coinbase statement continued: “Bermuda was one of the first financial centres to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigour, transparency, compliance and co-operation.

”Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator that is led by a world-class executive team and board of directors.

“The BMA is also a member of several international organisations and maintains close relationships with other regulatory agencies around the world.”

The move by Coinbase was part of its drive to refresh the firm’s “global scale to go broad and deep”, it says in an update on its website.

It comes as speculation mounts over whether the company intends to move its base out of the US, after corporate concerns over the lack of appropriate regulations in the United States.

Coinbase continue to echo what has become a familiar industry refrain: that the US approach to regulating the industry has them falling behind in the emerging technology.

Coinbase cofounder and CEO Brian Armstrong recently opined on the need for the US to lead when it comes to crypto.

He believes America should be at the forefront of the effort to update the financial system and make it faster, more efficient and easier; that the crypto sector and the US Government should be allies in the financial system’s reform, including providing the kind of clarity and certainty other governments around the world are doing. But he says the US is falling behind.

The company blog noted this week that it was working with many countries that were moving forward with strategies to become “crypto hubs”.

It continued: “We would like to see the US take a similar approach, but a ‘regulation by enforcement’ approach in the US is instead leading to a disappointing trend for crypto development in the US.”

And US financial regulators have upped the ante with their enforcement actions against crypto companies.

Coinbase received a Wells notice, a warning of impending legal action, from the Securities and Exchange Commission in late March.

Speaking at a recent fintech conference in London, Mr Armstrong expressed his frustrations.

With regard to company headquarters, he was quoted: “Anything is on the table, including relocating or whatever is necessary.”

The industry feels there is a lack of clarity in the US regulatory environment. Mr Armstrong believes the industry would be driven away without that clarity.

He said Coinbase had met with the SEC "30 times" without getting feedback regarding the nature of its business, before receiving the Wells notice.

Rival exchange Bittrex has already said they have had enough and will be closing their US office by the end of the month. Bittrex also received a Wells notice from the SEC, which filed a lawsuit against Bittrex this week.

Mr Armstrong noted some confusion between the positions taken by the Commodity Futures Trading Commission and the SEC, what he called “a turf battle”, noting their contradictory statements.

He said: “We just want a clear rulebook."

Meanwhile, under the Twitter hashtag #WelcomeCoinbase, Mr Burt tweeted: “I'm thrilled to see our island leading the ‘race to the top’ for regulation in this industry, as our trusted regulator and dynamic approach to change have made Bermuda a beacon of stability for companies like Coinbase to innovate and grow. Global fintech companies are taking note of the ecosystem that is developing in Bermuda, and I remain confident that even more companies will choose Bermuda in the future.

“This will lead to more job opportunities and will allow Bermudians to enter at the ground level of a growing global industry that is taking shape right here in Bermuda. I look forward to sharing why Bermuda is the choice for digital asset companies looking for stable and sound regulation next week at @consensus2023.“

The Government’s fintech adviser, Denis Pitcher, also welcomed the move in a tweet and noted this had been a long-term effort. He said: “Nice to see @Coinbase get their Bermuda Monetary Authority DABA licence.

“It was years of effort and pursuit to get them across the line.“

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Also offering congratulations was the law firm Walkers, which acted as lead counsel in the Coinbase Bermuda Limited application for the Class F digital assets business licence from the BMA.

Natalie Neto, Walkers partner, stated: "We are excited that Coinbase has chosen to establish an operating presence in Bermuda and delighted to have been able to provide a full range of legal and regulatory support to Coinbase on this application.

“We wish them continued success with their international expansion plans."

The Walkers team involved also included senior counsels Rachel Nightingale and Melanie Fullerton, and associates Matthew MacLeod and Lauren Thorburn.

The international expansion plans for Coinbase are extensive beyond Bermuda. The company said it will establish regulated entities and local operations in high-bar regulatory jurisdictions abroad to focus on international growth.

It is halfway through an eight-week international expansion drive in six continents, with a focus on cities such as London and Berlin, as on the ground, native efforts are already encouraging development of centres for crypto and blockchain activity.

Berlin is emerging as a global hub and others are following their lead.

Coinbase also notes they have launched their full crypto experience in Brazil, making it even easier for Brazilians to access the cryptoeconomy and benefit from increased financial freedom.

They continued: “In the UAE, building off the strong regulatory momentum for crypto in Abu Dhabi, earlier this month Dubai announced an ambitious framework designed to provide a licensing framework for digital assets.

“Dubai is seeking to be a global hub for crypto and blockchain. Reports indicate that Dubai's Virtual Assets Regulatory Authority has been actively attracting crypto projects and global talent.”

Coinbase highlighted specific development in several other countries including Bermuda, but also Australia, Singapore, China’s Hong Kong, Switzerland, India, Japan and Canada.

It said governments are moving quickly to bring crypto into their individual regulatory perimeters so as to strategically support efforts to position their countries as crypto hubs — attracting new companies, jobs and revenue.

And in response to this fast-moving regulatory activity in countries around the world, Coinbase wants to rapidly accelerate operationalising its “Go Broad, Go Deep” international strategy, rolling out initiatives in countries outside the US spanning across six continents: South America, Europe, Africa/Middle East, Asia, Australia and North America.