Coinbase Launches Global Derivatives Platform

Coinbase, the largest cryptocurrency exchange in the United States, announced the launch of its new global derivatives platform on May 2, 2023. The platform, called the Coinbase International Exchange (CIE), will allow institutional traders outside of the United States to trade Bitcoin (BTC) and Ethereum (ETH) perpetual futures.

The launch of the CIE comes at a time of regulatory uncertainty for the cryptocurrency industry in the United States. In recent months, the Securities and Exchange Commission (SEC) has taken a number of actions against cryptocurrency companies, including Coinbase. In February, the SEC sent Coinbase a Wells notice, which is a warning that the company may be violating securities laws.

In response to the SEC’s actions, Coinbase has filed a motion asking the regulator to clarify its regulations on cryptocurrency exchanges. The company has also said that it is prepared to fight the SEC in court if necessary.

The launch of the CIE is a sign that Coinbase is still committed to growing its business despite the regulatory challenges it faces. The company is hoping that the CIE will attract institutional investors from around the world who are looking for a regulated platform to trade cryptocurrencies.

Bermuda: A Crypto-Friendly Jurisdiction

The CIE is regulated by the Bermuda Monetary Authority (BMA). Bermuda is a British overseas territory with a reputation for being crypto-friendly. In 2018, the BMA became the first major regulatory body in the world to grant a cryptocurrency exchange a license.

Bermuda’s crypto-friendly stance has attracted a number of other cryptocurrency companies to the island. In addition to Coinbase, FTX and LedgerX have also set up operations in Bermuda.

The launch of the CIE is a further sign that Bermuda is becoming a leading hub for the cryptocurrency industry. The island’s regulatory environment is seen as being favorable to cryptocurrency companies, and its proximity to the United States makes it an attractive location for companies that want to do business in the world’s largest economy.