“Coinbase International Exchange will enable institutional users based in eligible jurisdictions outside of the US, to trade perpetual futures. 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.”
Coinbase launched an overseas derivatives exchange in Bermuda after securing a Class F license from Bermuda Monetary Authority.
The new platform, Coinbase International Exchange (CIE), will initially allow users to trade Bitcoin (BTC) and Ether (ETH) perpetual futures contracts. The perpetual derivatives contracts listed on CIE will provide up to five times leverage while supporting direct access trading via APIs.
CIE will forgo fiat on-ramps and instead utilize Circe-issued stablecoin USD Coin (USDC) for settling transactions.
It is worth noting that the derivative products on Coinbase International Exchange will not be available for retail clients. Instead, CIE’s offerings can only be accessed by non-US institutional clients.
The announcement came less than a month after the exchange’s CEO, Brian Armstrong, claimed that Coinbase may move out of the US if the regulators refuse to provide clarity on crypto laws. However, Coinbase reassured its US clients that the exchange will continue to operate in the nation. As mentioned in its blog post,
“Rest assured that Coinbase is committed to the US, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs.”
Coinbase is not the only crypto firm to set up an offshore crypto platform outside the US. Rival exchange Gemini also established a similar derivatives trading exchange, Gemini Foundation, in Bermuda. Gemini Foundation’s derivatives offerings will be denominated in the exchange’s stablecoin, Gemini Dollar (GUSD).
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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