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Coinbase International Exchange has achieved a significant milestone, announcing it had received regulatory approval from the Bermuda Monetary Authority (BMA), Bermuda’s financial regulator.
The approval allows Coinbase to enable perpetual futures for eligible non-US retail customers, allowing them to participate in perpetual futures trading.
A Significant Milestone
Coinbase announced the launch of the Coinbase International Exchange in May 2023. The new non-US exchange accompanied a class F license from the Bermuda Monetary Authority (BMA) to allow non-US institutions to trade perpetual futures. Now, Coinbase International has announced that it has received additional regulatory approval from the Bermuda Monetary Authority to extend perpetual futures trading to non-US retail clients. Over the next few weeks, the exchange will begin offering eligible customers access to regulated perpetual futures contracts. It also urged users to check their eligibility.
The blog post announcing the news also acknowledged the pivotal role played by the Bermuda Monetary Authority in facilitating the regulatory approval. Perpetual futures are a type of derivative market that have a unique characteristic of never expiring, hence perpetual. Their perpetual nature makes them an extremely attractive instrument for traders and investors looking to invest in the crypto market without being tied down with fixed maturity dates.
Expanding Access To Global Derivatives Market
Coinbase International stated that it is dedicated to partnering with high-bar global regulators and creating a crypto-regulatory framework that enables crypto technology to drive innovation.
“As announced in the Phase II of our “Go Broad, Go Deep” strategy, we are dedicated to partnering with high-bar global regulators to build a crypto regulatory framework that allows crypto technology to continually drive innovation.”
Coinbase stated that the company chose to build its business and become a public company in the US because it believed the US must be at the forefront of upgrading the financial system. However, the company added that it was excited to further its mission by offering access to perpetual futures to eligible non-US customers.
“We chose to build our business and become a public company in the US believing that the US should be at the forefront of efforts to update our financial system. However, in expanding greater access to perpetual futures to eligible non-US customers, we are excited to further our mission to help update the global financial system and provide more economic freedom and opportunity for users around the world.”
Cooperation Between Crypto Firms And Regulators
The approval highlights the importance of cooperation between regulators and crypto firms when it comes to shaping the future of digital finance. It also highlights the importance of Coinbase’s commitment to ensuring a safe and adequately regulated environment for cryptocurrency trading and investments.
The approval comes at a time when cryptocurrency exchanges are facing increased scrutiny from regulators and are curtailing their services in various regions. The crypto derivatives market accounts for 75% of the total crypto trading volume, indicating robust demand for derivatives. At the same time, only a few trusted players exist in the crypto derivatives market that provide the transparency and security needed by crypto traders.
In its blog post, Coinbase stated that its perpetual futures contracts have been built through rigorous compliance standards and have already seen around $5.5 billion in notional trading volume from institutions.
Coinbase Going After Violators
In a separate development, Coinbase has stated that it is reportedly limiting its services in India. New signups for Indian users are currently suspended, with users being redirected to downloading the Coinbase wallet. Coinbase has also sent out emails to its Indian customers notifying them of the termination. However, a spokesperson for the exchange clarified that the termination of services only applies to Indian customers who have violated the exchange’s terms and conditions.
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