U.S.-based crypto exchange Coinbase has launched a new Bermuda-based international derivatives exchange for institutional crypto traders outside the U.S.
The move came shortly after the firm received a digital asset license from Bermuda's Monetary Authority.
- The platform, Coinbase International Exchange, will first list Bitcoin (BTC) and Ether (ETH) perpetual futures.
- The new exchange will only cater to customers outside the U.S., though the firm currently awaits approval to offer futures directly to U.S. customers.
- All trading activities in the platform will be settled in USD Coin (USDC) stablecoin as part of the partnership with the issuer Circle.
- The launch of the international exchange followed the increased tension between Coinbase and the U.S. Securities and Exchange Commission (SEC).
- The firm recently disclosed that it was warned by the SEC with a legal notice about further action over a potential violation of securities laws through its exchange and staking services.
- Following its conflict with the regulator, the exchange entered into a legal battle with the SEC in late April by filing a petition requesting the court to force the agency to create a clear framework for digital assets.
- Coinbase CEO Brian Armstrong recently said the company could move its headquarters outside the U.S. if the regulatory environment does not change in the country.
- In 2022, Coinbase generated 84% of its revenue from the U.S. market.
- The U.S. has recently become famous for its strict regulatory approach toward the crypto industry, forcing the crypto firms to embark on a quest for alternative markets.
- Over the last several months, many crypto exchanges, including Coinbase, Kraken, Bittrex, and Binance, came under increased scrutiny by the U.S. regulators such as the SEC, the Internal Revenue Service (IRS), and the Commodity Futures Trading Commission (CFTC).
- The U.S.-based crypto exchange Gemini also recently launched a crypto derivatives platform dubbed Gemini Foundation that only caters to users outside the U.S.
