Crypto exchange, Coinbase, has stated it is still in a strong regulatory position despite what it termed a “disjointed” US approach. The exchange also stated it is well-positioned to overcome the US's increased regulatory scrutiny of digital assets.
Announcing this in a Twitter post, Coinbase shared its Q4 and 2022 financial year (FY’22) report with its shareholders.
In the report, Coinbase stated it works with industry and legal experts, global regulators, and policymakers to develop products that are safe for customers and compliant within its operating countries.
The exchange also noted that although it is not entirely perfect and has made mistakes in the past, it has ensured to remediate itself as quickly and thoroughly as possible. A recent example is Coinbase’s January 2023 settlement with the New York Department of Financial Services (NYDFS).
According to a statement by Coinbase,
“We expect 2023 to be a year of regulatory focus, and we believe our strong foundation will make us a net beneficiary of this new environment. Our business decisions do not always match competitive offerings or result in maximizing near-term growth or profit - but rather, they are intended to maximize safety for customers, legitimacy for the crypto-economy, and longevity for Coinbase.”
Coinbase stated it still believes that federal legislation is necessary and urged the US to follow the lead of jurisdictions in countries that have created frameworks for certainty and consistency.
The exchange said that irrespective of the 2022 bear market, Coinbase’s Q4 net revenue was $605 million, of which $322 million was transaction revenue and $283 million was subscription and services revenue. On a full-year basis, it generated a net revenue of $3.1 billion, of which $2.4 billion was transaction revenue and $793 million was subscription and services revenue.
