CoinJar, the Australian-based cryptocurrency exchange, has announced its plans to expand its operations in the United States, undeterred by the perceived “regulatory risks” in the market. CoinJar CEO and co-founder Asher Tan asserts that the company sees potential in the US market. However, others are apprehensive about the government’s approach to cryptocurrency regulations.
CoinJar’s Unwavering Belief in the Power of Regulation
In a recent interview with The Australian, Asher Tan emphasized CoinJar’s belief in the importance of regulation in the future of cryptocurrency. Tan stated,
“We’ve always understood that regulation has a key role to play in crypto’s future, and we believe the American market will reward an exchange with our unparalleled compliance bona fides.”
CoinJar’s confidence in its regulatory compliance capabilities may be the key to success in the challenging US market.
Established in Melbourne in late 2013, CoinJar has pioneered the Australian cryptocurrency market. The company also acquired a license to operate in the United Kingdom in September 2021. Currently, CoinJar boasts around 500,000 customers across both countries, a testament to its growth and success in the industry.
A Strategic Approach by CoinJar
CoinJar initiated its US expansion efforts in May by advertising an open position for an Anti-Money Laundering (AML) Compliance Officer. The job listing indicates that the successful candidate will be responsible for implementing and adhering to various regulatory programs and policies, including the AML/OFAC Program. Tan believes that CoinJar’s emphasis on regulatory compliance will be crucial for the company’s success in the US market.
Tan also mentioned that licensing in the US is conducted at the state level, and CoinJar plans to expand its presence across the states gradually. He added, “While not every company is able or willing to satisfy this criterion, CoinJar believes we’re well suited to take on this challenge.”
Learning from the Coinbase Experience
CoinJar’s US expansion plans may face potential obstacles, as evidenced by the experience of Coinbase, a leading US-based cryptocurrency exchange. Coinbase has consistently sought to engage in dialogue with the Securities and Exchange Commission (SEC) for regulatory compliance but has often faced setbacks.
For instance, the SEC issued a Wells notice to Coinbase in March, threatening legal action over some of the company’s offerings, which it claims violate securities law. Coinbase maintains that it had already disclosed the offering to the SEC before being approved to go public.
In response to these challenges, Coinbase has filed a petition in federal court, urging the SEC to adopt more explicit regulatory guidelines for the US cryptocurrency industry.
While potential roadblocks exist, as illustrated by the Coinbase case, CoinJar’s proactive approach to regulatory challenges could pave the way for its success in the United States. Only time will tell if CoinJar’s strategy will allow it to thrive in the rapidly evolving US cryptocurrency market.
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