TL;DR
- Coinbase has received authorization from the Bermuda Monetary Authority to provide perpetual futures trading services to retail users outside the United States.
- The exchange states that approximately 75% of the worldwide cryptocurrency trading volume originates from activities in the derivatives market.
Coinbase Receives Authorization to Roll Out Futures Trading Outside the US
Coinbase was approved to extend its perpetual futures trading services to retail customers outside the US.
As stated in their official announcement, this approval was granted by the Bermuda Monetary Authority (BMA).
Coinbase’s success in securing this regulatory green light comes after their International Exchange arm reported over $5.5B in futures trading volume during the second quarter.
This further underscores their foray into the derivatives market. Coinbase initiated its international division with BMA’s approval earlier in the year, offering perpetual futures trading to non-U.S. institutional clients.
The exchange mentioned that around 75% of the worldwide cryptocurrency trading comes from the derivatives market, showing its main interest.
Coinbase committed to collaborating with stringent global regulators in the second phase of its “Go Broad, Go Deep” strategy.
The strategy aims to construct a regulatory framework conducive to ongoing innovation in cryptocurrency technology.
Coinbase’s international expansion plan encompasses 24 countries, including G20 member states, Hong Kong, Switzerland, the United Arab Emirates, and Singapore.
Additionally, the company has expressed its intent to leverage the G20 conference scheduled for the following year in Brazil as a platform to advance its advocacy for a more comprehensive set of international regulations in the crypto space.
Coinbase – Problems in the United States
Amidst Coinbase’s ongoing challenges with the Securities and Exchange Commission, the firm highlighted concerns regarding U.S. regulatory ambiguity in its statement.
“We made the decision to establish our business and go public in the U.S., with the belief that the U.S. ought to lead the way in modernizing our financial system. We are eager to advance our objective of updating the worldwide financial system, aiming to grant more economic freedom and possibilities for global users.”
Coinbase
Recently, Coinbase received approval from the National Futures Association to function as a futures commission merchant, granting eligible U.S. clients access to crypto futures on its platforms.
However, the American crypto exchange Coinbase has been around for some time. Despite its presence, people have accused Coinbase of breaking financial rules, such as security trading and crypto staking.
Consequently, the company had to halt its staking service and delist several tokens to continue operating on American soil.
Given these circumstances, do you think that Coinbase will be able to win this battle against the SEC and CFTC? Or might they need to move their business outside of the US?
For now, they seem prepared to flee the United States…
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
