Coinbase has taken a significant step towards catering to a global audience by launching Coinbase International Exchange, a platform designed for institutional clients based in eligible jurisdictions outside the U.S.
The move highlights the company's commitment to expanding crypto adoption and utility worldwide as they adapt to the evolving regulatory landscape.
According to Coinbase, its efforts to broaden its reach by launching Coinbase International Exchange to cater to institutional clients in eligible jurisdictions outside of the United States. The platform aims to capitalize on the increasing demand for trusted and secure crypto trading services in the face of emerging crypto hubs around the world.
The company's decision to establish an international exchange comes amid similar moves by other major U.S. exchanges, such as Gemini and Kraken. These exchanges have also looked to expand their offerings beyond their home market, increasing pressure on U.S. lawmakers to create a more favorable regulatory environment for blockchain-enabled companies.
Coinbase International Exchange will initially offer perpetual swaps, a derivative similar to futures contracts, on ETH and BTC, with leverage of up to five times. By focusing on institutional clients, Coinbase aims to provide a more accessible and transparent platform for digital asset trading while maintaining high standards of customer protection and robust risk management frameworks.
As more countries work towards becoming crypto hubs, the Coinbase International Exchange hopes to stay ahead of the curve by partnering with high-bar regulators, such as the Bermuda Monetary Authority (BMA). The BMA is a well-respected financial regulator that upholds a high level of transparency, compliance, and cooperation, making it an ideal partner for Coinbase's international expansion.
Recent regulatory advancements outside the U.S., such as the European Union's MiCA, Hong Kong's VASP registration clarification, and the United Arab Emirates' growing crypto presence, further illustrate the need for major exchanges like Coinbase to expand their operations and remain competitive in a rapidly evolving industry.
Despite the challenges posed by the regulatory landscape in the U.S., Coinbase remains committed to its home market while strategically positioning itself as a global leader in the cryptocurrency sector. The launch of Coinbase International Exchange signifies the company's dedication to fostering economic freedom and opportunity through blockchain technology around the world.
At the time of writing, the Coinbase International Exchange is available exclusively to institutional clients in eligible non-U.S. jurisdictions. The exchange plans to continually update its offerings in response to the ever-changing regulatory environment and market demands.
Based on recent blockchain data, perpetual futures accounted for roughly 75% of global crypto trading activity for 2022. Upon news of the international exchange launch, Coinbase' public stock (NASDAQ:COIN) jumped by over 4%, balancing out by a 5.51% reduction as markets closed.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
