Coinbase International Exchange, a cryptocurrency exchange platform, has announced that it has received additional regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures trading to non-US retail customers. This approval comes after Coinbase International obtained a class F license from the BMA.
Coinbase International, which was launched in May 2023, already provides cryptocurrency derivatives services to institutional clients. With this latest regulatory approval, the platform will now extend its offerings to eligible retail customers, allowing them to access regulated perpetual futures contracts on the Coinbase Advanced platform in the near future. It is important to note that the Perpetual Futures accounts will be maintained by Coinbase Bermuda Limited, a subsidiary of Coinbase, and will be regulated by the BMA.
According to Coinbase, nearly 75% of crypto trading volume is generated from the derivatives market. By expanding their services to retail customers, Coinbase aims to provide access to the crypto derivatives market, which has long been dominated by institutional investors. The platform stated that they do not engage in market making and the liquidity on their exchanges is provided by established, independent liquidity providers who undergo thorough compliance reviews.
Coinbase believes that their platform will provide a secure and compliant gateway for retail traders to access the derivatives market. However, it is crucial to note that only non-US consumers in select countries can use the Coinbase International Exchange. Additionally, customers will undergo eligibility tests before they can open a Coinbase Advanced trading account.
This recent approval for Coinbase International follows their approval from the National Futures Association (NFA) to offer investments in crypto futures to eligible institutional clients in the United States. Despite facing regulatory challenges with the US Securities and Exchange Commission (SEC), Coinbase has continued to expand its services outside of the US. The SEC filed a lawsuit against Coinbase in June, alleging that the exchange violated local securities laws by selling unregistered securities.
In conclusion, Coinbase International has obtained additional regulatory approval from the Bermuda Monetary Authority to offer perpetual futures trading to non-US retail customers. This expansion of services aims to provide retail traders with access to the crypto derivatives market and comes shortly after Coinbase’s approval to provide crypto futures to institutional clients in the US. Coinbase continues to face regulatory challenges in the US, but is making progress internationally.