According to the CEO of Coinbase, cryptocurrency companies will expand their operations in “offshore” locations due to the lack of clear regulations in the US.

Coinbase CEO Brian Armstrong has called on the United States and the United Kingdom to clarify their regulations for the cryptocurrency industry to prevent offshore havens from developing. Armstrong made the remarks at a conference hosted by Innovate Finance, highlighting the importance of clear regulations for the industry.

The failure of the Bahamas-based FTX exchange last year has further underscored the need for major economies to develop clear crypto regulations.

While some countries such as the European Union have drafted bespoke crypto rules, the industry remains mostly unregulated in the United States. However, the UK’s finance ministry announced its first set of rules for regulating crypto in February, with its financial watchdog calling for tough rules to detoxify the sector in March.

Armstrong expressed his enthusiasm for Britain’s fast-moving approach to crypto regulation and his intention to continue investing in the UK. Nevertheless, he voiced concerns about UK banks taking a hardline stance towards customers transferring money to crypto exchanges to prevent fraud.

For example, NatWest, a top UK lender, imposed new restrictions on customer transfers to cryptocurrency exchanges in March to protect consumers from what it called crypto-criminals.