Aaryamann Shrivastava
FXStreet
- 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.
Read more - Coinbase, along with Crypto.com, attempted to acquire FTX twice since the bankruptcy
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.
Read more - Coinbase finds acceptance in Spain; continues to struggle in the US at the hands of the SEC
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