Former British Prime Minister George Osborne greets guests during a visit to the Manchester Chamber of Commerce and Industry in Manchester, England, on July 1, 2016.
Christopher Furlong | Getty Images
LONDON — A former British finance minister joined crypto exchange Coinbase as a global advisor on Wednesday, strengthening the company's regulatory negotiating power as it faces increased scrutiny from its U.S. side.
Coinbase has announced that George Osborne, who served as UK Chancellor of the Exchequer from 2010 to 2016, will join the company's global advisory board.
He, along with former U.S. Secretary of Defense Mark Esper and Patrick Toomey (R-Pennsylvania), were set up to “advise Coinbase on its global strategy as it expands its reach around the world.” I plan to join the council.
Faryar Shirzad, chief policy officer at Coinbase, said the company was “delighted to welcome George to our Board at an exciting time for us in the UK and globally.” .
“George brings a wealth of experience in business, journalism, and government. We look forward to relying on his insight and experience as we grow Coinbase around the world.” Shahzad added.
Mr. Osborn will serve in an advisory role at Coinbase, helping the company connect with politicians and regulators and helping shape crypto-friendly regulations.
As Chancellor of the Exchequer, Mr Osborne launched a series of austerity measures aimed at reducing the deficit, including freezing child benefit, cutting housing benefit and imposing a two-year pay freeze for public sector workers. He also worked to stimulate business activity by reducing corporate taxes.
After completing his term as UK Chancellor of the Exchequer, Mr Osborne briefly served as editor-in-chief of London's Evening Standard newspaper. He is currently a partner in his Robey Warshaw LLP, a boutique investment bank.
“There's a tremendous amount of exciting innovation happening in the financial industry right now,” Osborne said. “Blockchain is transforming financial markets and online transactions.”
“Coinbase is at the forefront of these developments, and I look forward to working with the team there as we build a new future for financial services,” Osborn continued.
Osborn's relationship with Coinbase is not new.
Hints of an expanded relationship between Osborne and Coinbase first surfaced last year when Coinbase CEO Brian Armstrong spoke on stage at a fintech event in London, moderated by Osborne.
Mr. Osborn then met with Coinbase Chief Financial Officer Alecia Haas by the fireplace at the Belvedere Hotel during the World Economic Forum in Davos, Switzerland.
This comes as Coinbase has expanded into multiple countries over the past few months with land acquisitions and new licenses across Europe. Last month, the company obtained a virtual asset service provider license in France, paving the way for its service expansion in France. It has also recently obtained licenses in Spain, Singapore and Bermuda.
Coinbase is currently facing a heavy regulatory crackdown in the US, with the Securities and Exchange Commission accusing the company of violating securities laws. Coinbase denies the allegations.
Last year, Armstrong, the head of Coinbase, joined Osborne on stage at the Innovate Finance Global Summit conference in London. At the event, Armstrong said that if regulatory pressure on crypto companies continues, he is open to increasing overseas investment, including moving from the US to the UK.
Armstrong told Osborne: “If we go years without regulatory clarity, we may have to consider investing more elsewhere in the world, including relocating.” Ta.
He told CNBC's Arjun Karpal at the time that Coinbase is “looking at other markets” as it considers its position from a regulatory perspective.
Armstrong later clarified in an interview with CNBC's Dan Murphy that there are no formal plans for Coinbase to move from its U.S. headquarters in San Francisco. “Coinbase has no intention of moving overseas,” Armstrong said. “We're always going to maintain a U.S. presence…but the U.S. is a little bit behind right now.”
