Coinjar to Kick Start Operations in the US: Report

• Australian cryptocurrency exchange Coinjar is planning to expand in the United States despite the worsening regulatory situation in the country. 
• Crypto exchanges like Coinbase are considering moving out of the country, while Kraken has already announced ending its operations in the US.
• Coinjar CEO and co-founder Asher Tan seems undeterred by the “regulatory risk” of the sector and is looking for people to handle regulatory compliance. 
• “Where other exchanges see regulatory risk, we see opportunity,’ said Tan, while adding that legal compliance is a necessity to succeed in the US.

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The United States has become a land of regulatory uncertainty when it comes to cryptocurrencies. Many crypto exchanges have decided to end operations in the country due to uncertain licensing issues and unclear guidelines. However, renowned Australian cryptocurrency exchange Coinjar is planning to expand in the US, as its CEO and co-founder Asher Tan seems undeterred by the “regulatory risk” of the sector.

Despite the increasing number of American cryptocurrency companies raising concerns about the government’s approach to digital asset regulation, Tan sees massive opportunity in the region. The company is looking for someone to handle regulatory compliance operations.

“CoinJar is expanding to the US, and we are seeking an AML Compliance Officer. The successful candidate will report to the Head of Legal & Compliance and the Board, take ownership of applicable programs and policies, including the AML/OFAC Program, and implement processes to ensure adherence to them,” the job listing reads.

On May 1, during an interview with The Australian, Tan stated, “Where other exchanges see regulatory risk, we see opportunity,’ while further adding:

“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.”

Tan believes that his company’s emphasis on legal compliance will be essential for it to succeed in a challenging region like the United States. 

“Licensing is done at a state level in the US, so we will be gradually adding states until we can get close to full coverage of states,” he said, noting that “while not every company is able or willing to satisfy this criteria, CoinJar believes we’re well suited to take on this challenge.”

Melbourne-based Coinjar, which was founded in late 2013, was one of the first exchanges to make it into the Australian market. Interestingly, in September 2021, it also obtained regulatory approval to operate in the United Kingdom and now reportedly has around 500,000 users across the two nations.

Although Coinjar’s plans appear promising in theory, American exchanges like Coinbase serve as a reminder of the challenges that Coinjar could encounter. As the Securities and Exchange Commission (SEC) issued Coinbase with a Wells notice on March 22 this year, Coinbase has submitted a petition in federal court demanding the SEC to propose and implement clearer standards for crypto regulations in the US.

As reported earlier by BitcoinWisdom, the US SEC has become very active in its crackdown against crypto companies and has even asked crypto companies to come and register their services with the regulator without creating a clear regulatory infrastructure. 

SEC Chair Gary Gensler was recently grilled in the US Congress to provide a status on ether and confirm if ether is a security or a commodity. However, he was unable to give a clear reply, and Congressman Patrick McHenry, who is also the Chairman of the United States House Financial Services Committee, wasn’t too happy.

Meanwhile, Representative Warren Davidson filed legislation in Congress to fire the Chairman of the US SEC. Davidson said that his legislation will aim to replace the role with an Executive Director that reports to the Board, where the actual authority will reside.

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