Coinbase International Exchange has garnered additional regulatory approval from the Bermuda Monetary Authority (BMA), enabling it to extend its perpetual futures trading services to non-US retail customers. This move is a significant milestone in the crypto exchange’s global expansion strategy, which was initiated in May 2023. Moreover, the approval comes at a pivotal moment when the crypto derivatives market is experiencing a surge in trading volume, with nearly 75% of all crypto trades stemming from this sector.
Bridging the gap between retail and institutional traders
Until now, the crypto derivatives market has been largely dominated by institutional players. However, Coinbase’s latest regulatory approval aims to level the playing field. The exchange plans to offer eligible customers access to regulated perpetual futures contracts on its advanced trading platform in the coming weeks. This development is part of Coinbase’s “Go Broad, Go Deep” strategy, which focuses on collaborating with high-bar global regulators to foster a crypto-friendly regulatory framework. Additionally, the exchange has emphasized that it does not engage in market-making activities, ensuring liquidity is provided by established, independent providers who have met stringent compliance standards.
Coinbase’s expansion into the non-US retail market for perpetual futures comes on the heels of its recent approval from the National Futures Association (NFA) to offer crypto futures to eligible institutional clients in the United States. This move is particularly noteworthy given the ongoing regulatory battle Coinbase faces with the Securities and Exchange Commission (SEC). Despite the SEC’s lawsuit filed in June, alleging the sale of unregistered securities, Coinbase continues to forge ahead with its international growth plans.
There is no doubt that the recent regulatory approval from the BMA marks a significant step for Coinbase International Exchange. It not only broadens the scope of its services but also provides non-US retail traders with a secure and transparent gateway to the burgeoning crypto derivatives market. By adhering to high compliance standards and focusing on customer-centric solutions, Coinbase is strategically positioning itself as a leader in the crypto industry.
