7 ms·
What prevents Coinbase to go offshore then ?
by wrong_variable 7y ago
What prevents Coinbase to go offshore then ?
- lallysingh 7y agoPlenty of offshore exchanges. People use coinbase because it's working within the US system.
- kentm 7y agoExactly this. From a consumer perspective, being subject to the US legal system is a big advantage.
- makosharky 7y agoA desire to interface with the US banking system.
- bdcravens 7y agoThe fact that they have a ton of VC they're already beholden to that is here in the US, and who aren't interested in IRS scrutiny themselves.
- sangnoir 7y agoAlso, the fact that Coinbase is in the US legal jurisdiction gives its clients confidence they would be made whole if anything untoward were to happen.
- rphlx 7y agoIf the untoward event is solely in USD, perhaps, but not if it's in crypto. Exit scams, hacks, rogue employees, etc, could still hit a US exchanges' crypto holdings and the government probably cannot or will not compell a roll back, supply expansion, etc, on a major blockchain. If anything is actually protecting clients against crypto theft, it's the exchange's privately-purchased insurance rather than the government. Although I wouldn't rely on that for much either as insurers are rarely eager to pay out.
- duxup 7y agoThey want to do business in the US and work with US banks.
- fooey 7y agoThat's not the kind of business they want to be. Coinbase want to be seen as legit, not an offshore tax haven.