Coinbase International Exchange, a proud holder of a class F license granted by the Bermuda Monetary Authority (BMA), has secured additional regulatory approval. This milestone marks a pivotal moment as the platform gears up to introduce perpetual futures trading for non-United States retail customers.
Expanding Horizons: A Regulatory Triumph
Launched with much fanfare in May 2023, Coinbase International initially catered exclusively to institutional clients seeking crypto derivatives services. However, with the latest regulatory green light, this crypto juggernaut is poised to provide eligible customers with access to regulated perpetual futures contracts on the Coinbase Advanced platform in the coming weeks.
It’s worth noting that these perpetual futures accounts will be diligently managed by Coinbase Bermuda and regulated with the utmost scrutiny by the BMA.
Leveling the Playing Field and Empowering Retail Traders
Coinbase International Exchange underscored the significance of this development by highlighting that nearly 75% of crypto trading volume stems from the derivatives market. This achievement unlocks a golden opportunity for retail traders to venture into a domain traditionally dominated by institutional giants.
Crucially, Coinbase reaffirmed its commitment to transparency by declaring its non-engagement in market-making activities. Instead, the exchange relies on well-established, independent liquidity providers who have undergone rigorous compliance reviews. This assurance bolsters confidence in the integrity of the platform.
Coinbase envisions its platform as the gateway for retail traders to confidently enter the derivatives market. However, it’s important to note that only non-U.S. consumers in select countries can utilize the Coinbase International Exchange. Eligibility assessments are conducted to ensure that customers meet the prerequisites before opening a Coinbase Advanced trading account.
Regulatory Approvals Galore
This latest regulatory nod for Coinbase International to offer perpetual futures to retail customers comes hot on the heels of its approval from the National Futures Association (NFA) to provide crypto futures investments to eligible institutional clients within the United States.
Coinbase’s Global Pursuits
Despite navigating a regulatory storm with the Securities and Exchange Commission (SEC), Coinbase remains undeterred. The SEC’s lawsuit, filed in early June, alleged that the exchange had violated local securities laws by offering unregistered securities. Nevertheless, Coinbase continues to forge ahead, extending its reach beyond U.S. borders.