- Coinbase International Exchange has recently secured regulatory approval to introduce futures trading.
- The crypto platform has introduced regulated perpetual futures trading for non-US retail clients.
- Coinbase has emphasized its unwavering commitment to security and compliance.
Coinbase International Exchange, holding a Class F license issued by the Bermuda Monetary Authority (BMA), has recently obtained further regulatory green lights, permitting the platform to introduce perpetual futures trading options for non-US retail clientele.
Coinbase Introduces Crypto Derivatives to Retail Traders
Having been unveiled in May 2023, Coinbase International has made crypto derivatives services accessible to institutional users. Following the latest regulatory nod, the crypto platform is all set to grant eligible customers entry to duly regulated perpetual futures contracts on the Coinbase Advanced platform in the weeks ahead.
In its official announcement, the crypto exchange asserted that nearly 75% of the crypto trading volume originates from the derivatives market. This newfound regulatory endorsement marks a significant stride toward leveling the playing field, offering retail traders an avenue into the crypto derivatives sector, which institutional players have long dominated.
Coinbase’s commitment to abstain from market-making activities, with liquidity on the platform being furnished by well-established, independent liquidity providers who have undergone rigorous compliance assessments.
Perpetual Futures Now Available for Non-US Coinbase Users
Only non-US customers from select nations are eligible to utilize the Coinbase International Exchange, and they must undergo a thorough eligibility assessment before being granted access to a Coinbase Advanced trading account.
This recent go-ahead for Coinbase International to offer perpetual futures to retail customers follows closely on the heels of the platform’s prior approval by the National Futures Association to extend crypto futures investment opportunities to qualified institutional clients within the United States.
On the Flipside
- Coinbase’s expansion into the crypto derivatives market, especially with perpetual futures contracts, could expose retail investors to heightened risks.
- The ongoing regulatory battle with the SEC may raise doubts about Coinbase’s long-term stability and legal compliance among potential investors.
Why This Matters
Coinbase International’s regulatory green light to offer perpetual futures to retail customers signifies a pivotal moment in the evolution of cryptocurrency trading. It levels the playing field, allowing retail traders access to the derivatives market dominated by institutions, promising a more inclusive and dynamic crypto landscape.
To learn more about Coinbase’s involvement with Chainlink’s cross-chain protocol, read here:
Coinbase’s Base Embraces Chainlink’s Cross-Chain Protocol
To stay updated on the SEC’s recent concerns regarding Coinbase’s role in the Celsius bankruptcy plan, click here:
SEC Raises Concerns Over Coinbase’s Role in Celsius’ Bankruptcy Plan