Australian cryptocurrency exchange Coinjar is looking to gain a foothold in the US, with its chief executive seemingly unfazed by "regulatory risk" in the market.
In an interview with The Australian on May 1, Coinjar CEO and co-founder Asher Tan said that while the recent wave of US crypto firms has sounded alarm bells over the way the government regulates it, he sees an opportunity. “Where other exchanges see regulatory risk, we see opportunity," he said, adding: "We've always understood that regulation plays a key role in the future of cryptocurrencies, and we believe the US market will reward exchanges with our unparalleled compliance integrity."
Headquartered in Melbourne, Coinjar was established in late 2013 and was one of the first exchanges to list in Australia, having received a license to operate in the UK in September 2021. According to reports, it has about 500,000 customers across Aust ralia and 2 countries.
Coinjar launched its US expansion plan in May, listing a job opening for an anti-money laundering (AML) compliance officer. “CoinJar is expanding into the US and we are looking for an Anti-Money Laundering Compliance Officer. Successful candidates will report to The Head of Legal & Compliance and the Board of Directors, have a grasp of applicable programs and policies, including AML/OFAC programs, and implement processes to ensure compliance These programs and policies,” the job listing read.
According to Tan, Coinjar's focus on compliance will be key to thriving in a tough environment like the US. “In the US, licensing is done at the state level, so we will gradually add states until we can get close to full coverage,” he said, adding, “While not every company will be able or willing to meet that standard , CoinJar believes we are well suited to take on this challenge.” While the idea sounds good in theory, US exchanges such as Coinbase provide examples of potential hurdles Coinjar could face.
Coinbase has repeatedly claimed that it has actively sought and failed to engage in dialogue with the SEC in the name of compliance.
The SEC issued a Wells notice to Coinbase on March 22, essentially threatening legal action against certain of the company’s products, which it claims violated securities laws. However, Coinbase argued that it had disclosed such offerings to the SEC before obtaining approval to go public. In response, Coinbase has since filed a petition in federal court asking the SEC to propose and adopt clearer regulatory guidelines for the cryptocurrency industry in the United States. “We’re actually sitting on the table asking for regulation, asking for rules, asking for a framework that makes sense for our particular technology so that we can register .”
