Bermuda Welcomes Coinbase With License To Initiate Operations: What It Means For Largest US-Based Exchange

Zinger Key Points
  • Coinbase plans to launch an offshore derivatives exchange in Bermuda.
  • Coinbase CEO has warned of relocation of crypto firms in the absence of a clear regulatory framework in the U.S.

Cryptocurrency exchange Coinbase Global Inc COIN has obtained a license to operate in Bermuda, signaling its plan to increase international business.

The license from the Bermuda Monetary Authority allows Coinbase to launch an offshore derivatives exchange in Bermuda as soon as next week.

The launch of this platform will enable Coinbase to offer products that are currently unavailable in the U.S. due to regulatory restrictions.

Perpetual swaps, a type of futures contract and a popular product in the crypto space, will be among the offerings of the new platform.

By launching an offshore exchange in Bermuda, Coinbase would be able to better compete with Binance BNB/USD, one of the world's largest cryptocurrency exchanges, and diversify its revenue base.

Also Read: Panic In Crypto Land: Bitcoin Dives, Ether Sinks, Altcoins Crumble — 4 Experts On The Path Ahead

Coinbase has also disclosed plans to expand its operations in Abu Dhabi as part of its "Go Broad & Go Deep" strategy.

The announcement came after CEO Brian Armstrong warned cryptocurrency firms may relocate offshore in the absence of a clear regulatory framework in the U.S.

"Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator that is led by a world-class executive team and board of directors. The BMA is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world," Coinbase stated in its blog post.

While it remains to be seen if Coinbase leaves the U.S. anytime soon, the move to set up shop in Bermuda suggests that the industry is increasingly considering locations like Hong Kong, Dubai, and Singapore as the primary places of business.

Read Next: From Anarchy To Order: EU's Game-Changing Crypto Laws To Reign In The Digital 'Wild West'

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CryptocurrencyNewsMarketsabu dhabiBermuda Monetary AuthorityBinanceCrypto hubsCrypto industrycrypto tradingCryptocurrency Exchangederivatives exchangeDigital Assets
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!