Coinbase International Exchange, a leading cryptocurrency exchange platform, has received approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures for eligible non-US retail customers in specific jurisdictions. This move is part of Coinbase’s strategy to expand its services globally and offer regulated derivatives to a wider customer base.
Coinbase International Exchange was launched earlier this year to overcome regulatory challenges in the US market. According to Coinbase CEO Brian Armstrong, the US is lagging behind in providing regulatory clarity for digital assets and is considered an outlier in the crypto sector.
The approval from Bermuda is a significant step for Coinbase, as it aims to pursue approvals in other jurisdictions worldwide as part of its “Go Broad, Go Deep” strategy.
While Coinbase remains committed to its US operations and becoming a public company, the expansion of perpetual futures trading to eligible non-US customers aligns with its mission to update the global financial system and provide economic freedom to users worldwide.
Perpetual futures contracts on Coinbase International have already seen substantial trading volumes, with over $5.5 billion in notional trading volume from institutions in Q2 alone.
To ensure its financial stability, Coinbase International Exchange is well capitalized through its Insurance Fund and Liquidity Support Program, both funded in USDC, a stablecoin pegged to the US dollar.
Coinbase CEO Brian Armstrong has been actively advocating for the digital asset industry in Washington, DC. As part of the recent “Stand with Crypto Day,” Armstrong joined around 40 firms in a policy blitz to promote the industry’s interests. Armstrong highlighted the growing interest in crypto trading in the US, surpassing the ownership of electric cars or membership in unions.
However, Armstrong also criticized the Securities and Exchange Commission (SEC) for its regulation-by-enforcement approach under the leadership of SEC Chair Gary Gensler. He pointed out that bipartisan bills have been approved in Congress to address regulatory concerns, and recent court rulings have been favorable towards the crypto sector. Armstrong expressed confidence in dealing with the ongoing SEC enforcement action against Coinbase.
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