Coinbase International Exchange Secures Regulatory Approval for Perpetual Futures Trading
Coinbase International Exchange, holding a class F license issued by the Bermuda Monetary Authority (BMA), has made a strategic move in the cryptocurrency market by announcing its acquisition of additional regulatory approval. This approval allows the platform to broaden its services by offering perpetual futures trading to non-US retail customers, reaffirming its status as a leading player in the crypto space.
A Vision for Cryptocurrency Innovation
Coinbase’s latest regulatory accomplishment aligns perfectly with its Phase II strategy, aptly named “Go Broad, Go Deep.” This strategy underscores Coinbase’s commitment to collaborating with global regulators who uphold stringent standards, aiming to construct a comprehensive regulatory framework for cryptocurrencies. This framework is intended to facilitate ongoing innovation while ensuring rigorous compliance and security protocols.
Despite the exchange’s choice to establish itself as a public company in the United States, it now seeks to expand access to perpetual futures for eligible non-US clients. This move not only bolsters its commitment to innovation but also reinforces its mission to modernize the global financial system, offering economic opportunities and freedom to users worldwide.
Coinbase: A Trusted Player in Crypto
At a time when many cryptocurrency exchanges are grappling with heightened regulatory scrutiny and withdrawing from certain regions, Coinbase International Exchange stands out as a trusted and stable platform in the market. The global cryptocurrency derivatives market, accounting for approximately 75% of total crypto trading volume worldwide, highlights the strong demand for derivative products among traders.
However, only a select few players provide the security and transparency that crypto traders demand. Coinbase has established itself as the most secure and compliant crypto exchange, offering perpetual futures contracts that meet rigorous compliance standards on Coinbase International Exchange. These contracts have already achieved substantial trading volume, surpassing $5.5 billion in notional value from institutional investors as of Q2.
Coinbase International Exchange adheres to the robust regulatory framework set forth by the Bermuda Monetary Authority, emphasizing rigorous risk management, compliance, and user protection standards.
What Distinguishes Coinbase?
Coinbase International Exchange differentiates itself through several key factors:
- Asset Security: Coinbase’s unwavering commitment to the safety of customer assets is widely recognized. The exchange’s publicly filed and audited financial statements confirm a 1:1 asset ratio.
- Strong Capitalization: The platform’s financial strength is bolstered by its Insurance Fund and Liquidity Support Program, backed by USDC, a highly liquid stablecoin, rather than an exchange-specific token.
- Experienced Risk Management: Coinbase boasts a dedicated risk management team with members who possess decades of experience managing trading and credit operations across diverse economic cycles.
- Market Independence: In contrast to some other exchanges, Coinbase does not engage in market making. Liquidity on the platform is provided by established and independent liquidity providers who have undergone comprehensive compliance assessments.
Expanding Access and Opportunities
Effective immediately, non-US retail traders have the opportunity to assess their eligibility for perpetual futures trading on Coinbase Advanced, with official trading scheduled to commence in the upcoming weeks.
Despite ongoing regulatory challenges, including a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) in early June alleging Coinbase’s violation of local securities laws by selling unregistered securities, Coinbase remains resolute in its mission to expand its global presence.
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