Coinbase, the largest cryptocurrency exchange in the US, has expanded its operations internationally by launching a new exchange. The move comes amidst reports of legal troubles with the US Securities and Exchange Commission (SEC), prompting Coinbase executives to search for new horizons to expand their operations.
The launch of the new international exchange marks a significant step in this direction. The company aims to provide institutional clients access to digital assets like Bitcoin and Ethereum perpetual futures contracts, settling all transactions in USDC.
Coinbase Goes Global
In a recent blog post, Coinbase highlighted its mission to update the financial system by building trusted products that expand the utility and adoption of crypto, with the belief that blockchain technology has the potential to increase economic freedom and opportunity around the world.
It’s official! Coinbase International Exchange is here. Institutional traders in eligible non-US jurisdictions now have access to trade perpetual futures settled in USDC with up to 5x leverage.
Read more about our announcement ⬇️https://t.co/vrIfK999om pic.twitter.com/E5ssl8NBz3
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 2, 2023
According to the announcement, the move towards a global perpetual futures exchange for digital assets is aimed at supporting 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.
Furthermore, Coinbase’s new global exchange will bring a high standard of customer protection, a robust risk management framework, and high-performance trading technology. The exchange will offer real-time 24/7 – 365 risk management, with liquidity provided by external market makers and no proprietary trading.
According to the announcement, the platform will also feature dynamic margin requirements and collateral assessments and a liquidation framework that meets rigorous compliance standards.
As mentioned before, Coinbase International Exchange has also announced the launch of its BTC and ETH perpetual futures contracts. However, these products are available exclusively to institutional clients in eligible, non-US jurisdictions and offer up to 5x leverage, settling all trading in USDC without fiat on-ramps.
Coinbase’s International Exchange Partners with Bermuda Monetary Authority
Coinbase International Exchange has announced its partnership with the Bermuda Monetary Authority (BMA), a highly respected financial regulator known for its high transparency, compliance, and cooperation level.
The BMA is led by an outstanding executive team and board of directors and maintains close relationships with other regulatory agencies worldwide, ensuring that Bermuda’s financial sector is in line with international standards and best practices.
With more markets moving forward with regulatory frameworks to become crypto hubs, the launch of the international exchange might be seen as timely.
Overall, Coinbase International Exchange believes that the US should take a similar approach to crypto regulation rather than regulation by enforcement, which has led to a disappointing trend for crypto development in the US.
Featured image from Unsplash, chart from TradingView.com