Coinbase receives regulatory approval to launch derivative trading for non-US customers

Coinbase received approval from the Bermuda Monetary Authority (BMA) to offer derivatives trading through its international exchange.
The exchange would now be able to tap into the services that contribute to 75% of the global crypto trading volume.
The exchange was Coinbase's answer to the regulatory crackdown in the US after the SEC filed a lawsuit against it.

Coinbase is emerging as the biggest entity to defy the enforcement actions pursued by the Securities and Exchange Commission (SEC) after successfully launching its International exchange in Bermuda in Q2 this year. The exchange is now expanding to meet the demands of its users by bringing derivatives services.

Coinbase exchange receives derivatives trading approval

Coinbase announced on September 28 that it received the necessary regulatory approval in order to provide its users with derivatives trading services. The approval came from the Bermuda Monetary Authority (BMA) to extend its perpetual futures trading services to non-US retail customers.

The world's second-biggest exchange noted in the announcement that about 75% of the global crypto trading volume comes from the derivatives market alone, and tapping it would significantly ameliorate the revenue generated by the exchange.

As is, Coinbase International Exchange has already registered over $5.5 billion in spot trading volume and derivatives trading conducted by the institutions.

Rebellion against SEC

The formation of Coinbase International Exchange was in response to the SEC's enforcement actions against Coinbase in the United States. Back in May this year, the regulatory body filed a lawsuit against the exchange for violating Securities laws.

Coinbase responded to this with the threat of exiting the US, and this was followed by the launch of the international exchange. The cryptocurrency exchange had to take this step despite being the biggest of its kind in the country.

However, in comparison to Binance, which is the world’s biggest exchange, Coinbase falls short by a mile. Conducting over $900 million worth of trading in the past 24 hours, Coinbase is far behind Binance’s $5.3 billion in trading volume in the same time period. But with the addition of retail derivatives trading, not only Coinbase International Exchange but Coinbase itself could see increased interest from users.

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.