US Crypto Crack Down Intensifies; Will Cryptocurrency Companies Move to UK?

The U.S. crypto crackdown is still intensifying as the Securities and Exchange Commission launches two lawsuits against Coinbase and Binance.

US Crypto Crack Down Intesifies; Will Cryptocurrency Companies Move To UK? — An image of Bitcoin and US currencies is displayed on a screen as delegates listen to a panel of speakers during the Interpol World Congress in Singapore on July 4, 2017. - The three-day conference on fostering innovation for future security challenges is taking place from July 4 to 6. ROSLAN RAHMAN/AFP via Getty Images

While the U.S. government continuously clamps down on these large cryptocurrency exchanges, the United Kingdom stays silent.

The question is, will Binance and Coinbase move to the United Kingdom? Or will the U.K. government also start taking legal action against cryptocurrencies?

US Crypto Crack Down Intensifies

According to The Guardian's latest report, the legal action against Binance mostly focuses on allegations that the crypto company is helping traders who should only be allowed on the regulated exchange to skip over to the international exchange.

Bitcoin — A man shows a souvenir coin depicting a bitcoin in Caracas on September 17, 2021. - According to a study by several universities, 96% of the population lives in poverty so video games that involve non-fungible tokens (NFTs) have unleashed a boom among the population that dreams with having a plant (Plant Vs Undead) that allows them to earn a bitcoin to get out of poverty. YURI CORTEZ/AFP via Getty Images

Although this is a big crackdown, the lawsuit against Coinbase is a much more serious one.

This is because SEC argues that running a cryptocurrency by itself is illegal. The security agency states that some crypto tokens handled by Coinbase are regulated securities.

SEC officials added that even if these crypto projects are not illegal in a sense, it is still against the law to help people trade in them.

As of writing, the crackdown conducted by the U.S. SEC against Coinbase and Binance is still murky.

Will Crypto Companies Move To U.K.?

As of writing, it is still hard to conclude if the crackdown of the U.S. could lead to crypto companies moving to the U.K.

Numerous crypto experts believe that the United Kingdom is on the right path to becoming a leader in crypto regulation.

"While there is still work to be done, we believe that the U.K. is on the right path to becoming a leader in crypto regulation," said Chris Dixon, the Andreessen Horowitz head.

Of course, the U.S. still wants the crypto sector to boom in its own lands. However, Coin Desk reported that for this to happen, U.S. lawmakers need to come up with a comprehensive framework on how to regulate the crypto industry.

If you want to learn more details about the ongoing lawsuits of the U.S. against Binance and Coinbase, you can visit this link.