Coinbase launches international exchange
Shortly after Coinbase announced a Bermuda presence, America’s largest crypto exchange has now announced the launch of its international exchange.
The institution said today: “In executing on the next chapter of the company's ‘Go Deep, Go Broad’ global expansion strategy, Coinbase International Exchange brings the safest, most trusted name in crypto to the global derivatives market.”
Coinbase International Exchange holds a Class F digital assets business licence under the Digital Assets Business Act 2018 (as amended) and is licensed by the Bermuda Monetary Authority, according to its website.
The company is still staring down proposed SEC sanctions for allegedly violating several investor-protection regulations related to assets listed on its cryptocurrency exchange, its wallet and staking services.
It has urged the commission to clarify the rules for cryptocurrencies and establish clear rules for when a digital asset is considered to be a security.
The company has taken the case to court, asking a Texas federal judge to force the Government to respond.
Coinbase principals said recently they want to stay in the United States, but the lack of clarity is making it difficult to know how to be on the right side of the law, while other countries “are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs”.
“We would like to see the US take a similar approach instead of regulation by enforcement, which has led to a disappointing trend for crypto development in the US.”
The regulatory uncertainty in the US has already forced exchanges such as Bittrex to shut their US operations.
The SEC’s enforcement division has sent notices to multiple exchanges, alleging evidence of infractions in the past year. Coinbase and competitors Kraken and Binance are on that list.
But Tuesday the company said: “At Coinbase, we’re working hard to help update the financial system by building trusted products that expand the utility and adoption of crypto because we believe crypto and blockchain technology have the ability to increase economic freedom and opportunity around the world.
“Coinbase chose to become a public company in the US because we believe the US would best be served by embracing this fundamental innovation, but we’re also focused on international markets, many of which are moving forward with strategies to become ‘crypto hubs’.
“Building trusted products that expand the utility and adoption of crypto for a global audience has been core to our strategy since inception. The need for a trusted, secure and transparent leader in global crypto markets has never been stronger.
“Coinbase is dedicated to partnering with high-bar regulators across US and non-US jurisdictions to help update the financial system by developing additional solutions and products, leveraging our high standards of customer protection and robust risk management frameworks.
“With the recent approval of our regulatory licence from the Bermuda Monetary Authority, today we are excited to announce the launch of Coinbase International Exchange.”
The new exchange will enable institutional users based in eligible jurisdictions outside of the US to trade perpetual futures.
Perpetual futures accounted for nearly 75 per cent of global crypto trading volume in 2022, creating highly liquid markets and offering traders additional versatility in their trading strategies.
The company said: “Building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the US.
“As more and more markets are moving forward with regulatory frameworks to become crypto hubs, we believe the moment is right to launch this international exchange.”
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