Coinbase Launches Global Exchange Platform for Crypto Futures Trading

Key Insights:

  • Coinbase obtains a regulatory license from Bermuda Monetary Authority for international perpetual futures trading.
  • Coinbase International Exchange offers leverage of up to 5 times the initial amount for BTC and ETH.
  • Coinbase expresses disappointment towards SEC’s lack of response to their proposals and notice of potential legal consequences.

Coinbase has recently introduced a new global exchange platform that seeks to cater to the demands of its growing institutional clientele, providing them with a comprehensive array of cryptocurrency services. The international Coinbase exchange presents perpetual futures contracts for the most popular digital assets of Bitcoin (BTC) and Ether (ETH).

Coinbase approved for international trading expansion

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Coinbase announced that it has obtained a regulatory license from the Bermuda Monetary Authority (BMA). According to the company, Coinbase International Exchange’s perpetual futures trading is accessible in eligible jurisdictions outside the United States. Nonetheless, it did not provide any details regarding the requirements for eligibility or the nations where institutional clients can conduct trades.

According to the official statement, the international exchange assures clients of safe customer protection, top-notch trading technology, and a robust risk management system. Coinbases also assure clients of continuous risk management, the liquidity provided by external market makers, and adaptable margin requirements. Additionally, the exchange offers a liquidation framework that adheres to compliance standards and has adequate capital to weather turbulent market conditions.

Coinbase has announced the launch of contracts that will offer leverage of up to 5 times the initial amount, settling all trading using USDC without requiring on-ramps. Unlike conventional futures, perpetual contracts permit traders to hold their positions indefinitely without any expiry date, negating the need to execute a deal at a specific time.

Coinbase International Exchange Isn’t available to US customers

According to Coinbase’s announcement, the new Coinbase International Exchange is not accessible in the United States due to the unfavorable regulatory climate for cryptocurrencies. The company is still dedicated to the US but believes other nations are taking proactive steps towards developing responsible crypto-friendly regulatory frameworks, leading to their strategic positioning as crypto hubs. Coinbase expressed a desire for the US to adopt a similar approach instead of relying on regulation by enforcement, which has resulted in a discouraging trend for crypto development in the country.

The SEC of the United States has been imposing strict measures on cryptocurrency companies as part of its ongoing efforts to regulate the industry. Recently, Coinbase, a popular cryptocurrency exchange, received a notice from the regulatory body indicating that there could be legal consequences for the company’s actions. The notice, known as a Wells notice, cited potential violations that the SEC had uncovered and the possibility of further action being taken.

Coinbase has issued an official statement expressing their disappointment towards the recent development. According to the exchange, the notice needs more information to respond appropriately. The notice comes after Coinbase submitted several proposals to the SEC, seeking further information and clarification on registration and related matters. The exchange has further highlighted that the SEC did not respond to any of the proposals submitted.

Last year, the SEC investigated Coinbase and requested a possible solution to address the issue. Coinbase created two distinct registration models to comply with the request, spending considerable money. However, the SEC did not respond to their efforts or clarify any questions about the assets on their platform. Coinbase had numerous meetings with the SEC for nine months, but no resolution was reached.

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