According to reports, Coinbase is preparing to introduce an offshore derivatives trading platform now that it has been granted permission to do business in Bermuda.
The US exchange previously made hints about opening an exchange abroad and concentrating on worldwide expansion in light of the harsh treatment given to cryptocurrency firms by American regulators.
U.S. Regulators Force Coinbase To Look At Offshore Options
In a recent blog post, Coinbase disclosed that it had received a Class F license under the Digital Asset Company Act from the Bermuda Monetary Authority (BME). The US cryptocurrency exchange continued by saying that Bermuda was one of its worldwide hubs because of its financial regulator’s extensive experience.
“Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation”, Coinbase stated.
Coinbase intends to open an offshore derivatives market in Bermuda as early as next week, according to a Fortune story. A person familiar with the exchange disclosed the plans. Brian Armstrong, the CEO, has been outspoken about his business’s aspirations to go global. A day after the CEO suggested that the company might relocate abroad, news of the offshore exchange in Bermuda broke.
Armstrong said anything is on the table at a fintech conference in London. Including, you know, moving or anything else required. A prospective new cryptocurrency trading platform that could be established abroad was previously discussed by Coinbase with its institutional investors.
Brian Armstrong and other industry titans have consistently warned about the ramifications of the regulatory attack on the US crypto business. Gary Gensler, the Securities and Exchange Commission chairman, is in charge of the anti-crypto effort. The securities regulator has issued Wells letters to numerous crypto businesses, including Coinbase, and started enforcement actions against other crypto enterprises since 2023 began.
Read more:
- Coinbase Lists Flare Token (FLR) On Its Platform
- Coinbase Launches Base, An Ethereum Layer 2 Network Using Optimism’s OP Stack