Coinbase, a major US cryptocurrency exchange, is entering overseas markets. The company announced the launch of Coinbase International Exchange, its international futures trading platform for digital assets. They are licensed in Bermuda and registered there.
The service will offer perpetual futures with up to 5x leverage to institutional investors outside the US. The platform already offers derivatives on Bitcoin and Ethereum.
Coinbase was granted a Class F licence by the Bermuda Monetary Authority (BMA) in mid-April, which allows it to operate a digital asset exchange and be a provider of digital asset derivatives, as well as to sell and issue tokens.
Brian Armstrong, chief executive of the trading platform, said Coinbase is considering leaving the US market if the rules imposed on cryptocurrencies do not become more transparent and clear in the next few years.
Brian Armstrong compared the US approach to digital money to the UK - where one regulator, the Financial Conduct Authority (FCA), oversees both commodities and securities. In contrast, the US has two separate bodies - the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) - that compete for authority over cryptocurrency transactions.
However, Coinbase noted that Bermuda is known for its "high level of transparency" and compliance with legislation, making it a favourable place to do business.
