Coinbase's Global Expansion

Coinbase, North America's largest cryptocurrency exchange, focuses more on global expansion, particularly in Asia. While the company faces intense competition in many international markets, it is advancing its expansion strategy.

John O'Loghlen, APAC Managing Director of Coinbase and Country Director for Australia, recently discussed the exchange's global ambitions and regulatory challenges.

A New Zealand native based in Sydney, O'Loghlen brings international experience from roles with Chinese companies, including Alibaba. In the interview, he highlights Coinbase's work to adapt its products for different markets, navigate diverse regulatory landscapes, and develop its Base Network.

Adapting Products for Local Markets

"Our history lies in North America, with over 100 million consumers. For over eight years, we've operated internationally, with hubs in 10 global markets where we're fully registered, including Brazil, Canada, the US, the UK, Germany, Holland, France, Ireland, Singapore, and Australia," O'Loghlen stated.

Brian Armstrong has strongly emphasized an international-first approach. We're catching up in derivatives and perpetual products, where Asian exchanges have been quicker. To compete, we launched our INTX exchange in Bermuda.

We've established 'growth pods' in EMEA, the Americas, and APAC. Based in Singapore, the APAC pod collaborates with platform teams to localize products. We're about two-thirds of the way through adapting our North American app, and we've been tailoring products to local markets, as we've done in Australia for two years.

Subscription Models and Cultural Relevance

I'll give you an example: pricing on a subscription model like CB1 (Coinbase One). We historically had a solid commitment to a global pricing model. CB1 is our subscription product, for which you pay an annual fee.

If you're trading a lot, it's an advantageous product. You also get incentives, loyalty points, rewards, and different levels of white-glove service.

In some markets, if we were to calculate the subscription amount from US dollars automatically, it may be too low, too high, or completely out of line with other subscription services in that market. People often think of subscriptions like Netflix. We must ensure we're in the ballpark for what's relevant in those cultures.

Navigating the Political Landscape

Crypto is a bipartisan and nonpartisan issue. Both sides of the House, along with independent parties, are recognizing its importance. They understand that losing this demographic isn't an option. In the US, over 50 million people hold crypto—more than those holding union cards or owning electric vehicles. It's a significant voting bloc.

In the next 12 months, we'll see two billion plus people voting in some of the largest, most populous economies in the world. As an industry, technology, and innovation, we have a seat at the table now.

In the US, we have a well-funded Super PAC called Fairshake. We've probably had more success on the Democratic side because Republicans are naturally more interested in crypto. Now, we've got an equal level of support from both sides of the House.

Regulatory Challenges and Collaborations

"Whether we like it or not, many people look to the US as a leading force in the world," said O'Loghlen. "What happens there does influence what happens in other places, and that's the case with the SEC."

"Not particularly good, but it's an ongoing relationship," O'Loghlen commented.

We've had some successes and remain constantly vigilant. Our legal teams are exceptional, confident in our positions, and committed to being responsible actors with all regulatory agencies.

We collaborate with the FBI, global intelligence teams, securities agencies, and consumer watchdogs. We see ourselves as vital to the broader technological and financial industries.

Unfortunately, the SEC is targeting us through regulation and enforcement because there isn't any regulation there yet. We see some green shoots, like FIT21 and other things that have been tabled and come to the attention of leading members of Congress. But it's still in motion.

The Vision for the Future

It's really about this broader goal of a billion people on-chain. If you bring a billion people on-chain, Base says it needs nearly free gas fees and fast speed, even when things are surging.

Base is about getting all the most innovative and utility use cases on-chain. It initially appealed to people in North America for about a year and is now increasingly appealing in other geos, particularly in Asia.

The Base team is driving their project and making their own decisions to be seen as authentic. This is not something that's being chilled by Coinbase, which is deploying Base ambassadors into different markets, but it's a lot more community-driven.

They're not Coinbase employees, but they hold meetups, hackathons, and Base Days. The ambassadors qualify by having launched one or multiple projects on Base.

"How amazing this community momentum is that 600 side events were going on in Singapore during the week of TOKEN2049, and one percent of those six events were Base events," O'Loghlen noted.

These are all organically sprouting up like mushrooms. It's a super exciting time, but it'll keep evolving, he added.

This accredited investor launch is significant for Base in Singapore. It's very important to the MAS, and Base has spent a lot of time with them. It's incredibly important for its brand to be the best actor in the region.

Base is sponsoring the Melbourne Marathon in Australia, while Coinbase has never sponsored any sporting events in Australia. Base also had people up at Korea Blockchain Week and made a big announcement with HYBE's subsidiary.

"We're looking at this region holistically, but we have to prioritize where we spend our budget and where we want to apply our strategy," Loghlen concluded.