Embracing Regulatory Risk
Australian crypto exchange Coinjar is seeking to put its boots on the ground in the United States, with its CEO seemingly unfazed by the market’s “regulatory risk.” In an interview with The Australian on May 1, Coinjar CEO and co-founder Asher Tan said he saw opportunity despite a recent wave of U.S. crypto firms sounding alarm bells over the government’s approach to regulation.
Coinjar’s Background
Coinjar is based in Melbourne and was founded in late 2013. It was one of the earliest exchanges to hit the market in Australia and also secured a license to operate in the United Kingdom in September 2021. It is reported to have around 500,000 customers across the two countries.
U.S. Expansion Plans
Coinjar kicked off its U.S. expansion plans in May by listing a single open role for an Anti-Money Laundering (AML) compliance officer. Tan suggested that Coinjar’s focus on regulatory compliance will be key to thriving in a difficult environment like the United States.
Potential Roadblocks
While the idea sounds good in theory, U.S. exchanges such as Coinbase provide an example of the potential roadblocks that Coinjar could face. Coinbase has claimed on several occasions that it has actively sought to engage in dialogues with the Securities and Exchange Commission in the name of compliance, but has ultimately had those efforts thrown back in its face. The SEC slapped Coinbase with a Wells notice on March 22, essentially threatening legal action over some of the firm’s offerings, which it asserts are violating securities law. Coinbase however, has argued that it already disclosed such an offering to the SEC prior to getting the greenlight to go public. In response, Coinbase has since filed a petition in federal court requesting the SEC to propose and adopt clearer regulatory guidelines for the cryptocurrency industry in the U.S.
Embracing Opportunity Amid Uncertainty
In conclusion, Coinjar’s decision to venture into the U.S. market despite regulatory concerns highlights the company’s confidence in its compliance capabilities and its commitment to seizing opportunities in a challenging environment. As the cryptocurrency landscape in the U.S. continues to evolve, Coinjar’s focus on regulatory compliance may prove to be a key differentiator, setting it apart from competitors and helping it navigate the complex regulatory landscape. However, it remains to be seen how the company will fare in the face of potential roadblocks and legal challenges that have troubled other crypto exchanges like Coinbase.
