- Coinbase International Exchange is based outside of the U.S.
- Institutional clients can trade perpetual futures contracts with up to 5x leverage.
- Coinbase commented on why it has decided to launch a new exchange offshore.
The current crypto bear market has been brutal not only because of the plummeting digital asset prices but also because of regulatory response, especially in the U.S.
The regulatory environment for crypto companies in the U.S. has become so restrictive that Coinbase has decided to launch its new derivatives exchange offshore.
Coinbase Launches New International Exchange
Coinbase, the largest crypto exchange in the U.S., announced on Tuesday that itโs launching a new derivatives exchange called Coinbase International Exchange.
Sponsored
The new exchange is based in Bermuda, where Coinbase was recently granted a regulatory license from the Bermuda Monetary Authority (BMA).
Institutional clients in eligible jurisdictions outside the U.S. can now trade perpetual futures contracts with up to 5x leverage on Coinbase International Exchange. The exchange listed BTC and ETH perpetual futures contracts earlier today.
Coinbase said itโs still committed to the U.S. market but wants to see the country become a โcrypto hubโ instead of โregulation by enforcement.โ
โRest assured that Coinbase is committed to the U.S, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs. We would like to see the U.S. take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the U.S.โ
Coinbase stock reacted positively to the news. COIN is currently trading at $51.67, up more than 3% on the day, according to data from Yahoo! Finance.
On the Flipside
- Coinbase International Exchange is currently available only for institutional investors. Itโs unclear when retail investors will get access to it.
Why You Should Care
Coinbase is the second-largest crypto exchange in the world. Itโs encouraging to see the exchange find ways to develop new products and services despite the unwelcoming regulatory environment in the U.S.
Read more about Coinbaseโs crypto advocacy efforts:
Coinbase Turns to NFTs in Crypto Advocacy Efforts After Suing SEC
Read more about Franklin Templetonโs fund launching on Polygon:
Franklin Templeton Launches $270M Money Market Fund on Polygon
