Coinbase’s international subsidiary recently received regulatory approval, just a month after its U.S. subsidiary obtained approval from the National Futures Association (NFA) to offer crypto derivatives services to eligible institutional clients in eligible states.
The Bermuda Monetary Authority (BMA) has granted additional regulatory approval to Coinbase International Exchange, which holds a class F license, allowing it to offer perpetual futures trading to non-U.S. retail customers.
In May 2023, Coinbase International initiated its crypto derivatives services for institutional clients. Following the latest regulatory approval, the cryptocurrency platform is gearing up to provide eligible users with access to regulated perpetual futures contracts on the forthcoming Coinbase Advanced platform in the upcoming weeks.
The exchange clarified that it holds perpetual futures accounts regulated by the BMA and that Coinbase Bermuda is the custodian.
Coinbase stated that the derivatives market accounts for approximately 75% of the crypto trading volume. The company also indicated that the new regulatory approval will enable retail traders to access this market, which institutions currently dominate.
Additionally, the exchange emphasized that it does not engage in market-making and that established, independent liquidity providers, which have undergone compliance reviews, provide liquidity in the markets.
In a statement, Coinbase International asserted that its platform would serve as an ideal gateway for retail traders seeking secure and competent access to the derivatives market. The company also mentioned that the Coinbase International Exchange is available only to non-U.S. consumers from specific countries and that all customers must undergo a suitability assessment before opening a Coinbase Advanced trading account.
However, Coinbase International’s recent approval to provide perpetual futures to retail clients comes just a month after it received approval from the National Futures Association (NFA) to extend crypto futures investments to qualified institutional clients within the United States.
Despite facing a legal challenge from the Securities and Exchange Commission (SEC), Coinbase has continued expanding its operations outside the United States. In June of this year, the SEC filed a lawsuit against Coinbase, alleging that the exchange had offered and sold unregistered securities in violation of federal securities laws.