Coinbase, a leading cryptocurrency trading firm, has announced the opening of a new international derivatives exchange in Bermuda.
The launch of the Coinbase International Exchange marks the company’s latest move in its global expansion plan and comes as it faces regulatory challenges in its home market.
The new facility will initially offer traders the opportunity to bet on the prices of bitcoin and ether via perpetual futures contracts with leverage of up to 5x. All trades on the platform will settle in the stablecoin USDC. Coinbase has confirmed that trading on the new exchange has already commenced.
Derivative trading is a popular corner of the global crypto market, but the regulatory environment in the United States has been a significant barrier to entry for companies seeking to offer such services.
Coinbase expressed disappointment with the regulatory approach in the US, which it described as “regulation by enforcement.” The company sees opportunities in countries around the world that are taking a “crypto-forward” approach to regulation, positioning themselves as hubs for digital assets.
The move to Bermuda represents a significant step forward for Coinbase’s international expansion efforts. Other US-based crypto companies, such as Gemini, have also launched their own international derivatives exchanges as they seek new opportunities abroad.
Coinbase remains committed to its US operations, but the company believes that countries around the world are increasingly moving forward with responsible crypto regulatory frameworks.
The company has called on US regulators to take a similar approach, rather than relying on regulation by enforcement, which it believes has been a disappointing trend for crypto development in the US.
The launch of the Coinbase International Exchange is an exciting development for the global crypto market, and it demonstrates the company’s continued commitment to innovation and growth in the industry.
With this move, Coinbase is positioning itself to capitalize on new opportunities both at home and abroad.