Coinbase has secured the necessary regulatory permissions to provide perpetual futures trading for retail clients outside of the U.S.
On Thursday, the leading U.S.-based cryptocurrency exchange mentioned in a blog post that it has obtained further approval from the Bermuda Monetary Authority (BMA) to extend perpetual futures trading to non-U.S. retail clientele.
The statement added, “In the upcoming weeks, we’ll start giving qualified clients access to regulated perpetual futures contracts via Coinbase Advanced.”
Coinbase’s global arm, Coinbase International Exchange, reported a substantial notional futures trading volume exceeding $5.5 billion from institutional investors in this year’s second quarter.
Following this recent regulatory nod, Coinbase is poised to broaden its services to include retail clients as well.
Derivatives trading holds substantial sway in the worldwide crypto market, representing roughly 75% of the overall trading volume.
Recognizing this potential, Coinbase is keen to cater to the increasing appetite for perpetual futures trading seen among retail traders.
Coinbase to Work With Regulators
Coinbase, in its recent announcement, highlighted its intention to collaborate “with progressive regulators” to formulate a robust regulatory blueprint that both spurs crypto innovation and prioritizes customer safety.
Building on the second phase of their “Go Broad, Go Deep” initiative, Coinbase articulated, “We are deeply committed to liaising with stringent global regulatory bodies to carve out a crypto regulatory landscape that perpetually propels the technology’s innovation.”
The exchange firmly believes that a clear-cut regulatory structure is pivotal for the sustainable growth and widespread acceptance of digital currencies.
Internationally, Coinbase has its sights set on 24 nations, encompassing G20 members and notable financial hubs like Hong Kong, Switzerland, the UAE, and Singapore.
Furthermore, Coinbase has voiced its aspiration to be part of the forthcoming G20 summit in Brazil. The platform intends to leverage this gathering as a platform to champion the cause of more unified and transparent global regulations for the crypto sector.
Coinbase Pushes For Global Expansion
Recently, Coinbase announced that it has obtained an Anti-Money Laundering (AML) compliance certification from the Bank of Spain. This achievement solidifies its status as an officially recognized cryptocurrency exchange within the nation.
This association with the Bank of Spain grants Coinbase the ability to extend its comprehensive range of products and solutions to both individual and institutional clientele in Spain, all while adhering to the nation’s regulatory standards.
In the preceding year, Coinbase has secured Virtual Asset Service Provider (VASP) licenses in various European territories, including Italy, Ireland, and the Netherlands.
Moreover, the platform has procured provisional authorization and rolled out its offerings in global markets such as Singapore, Brazil, and Canada.
Coinbase’s aggressive global outreach coincides with an increasingly challenging regulatory environment in the U.S.
This past June, the SEC initiated legal action against Coinbase, accusing them of vending unregistered securities amongst other purported violations.
Furthermore, the regulatory body leveled allegations against the exchange for illicitly offering a spectrum of financial services. This includes the trading of securities without appropriate registration as a securities exchange.
In the wake of the SEC’s lawsuit, Coinbase, the foremost cryptocurrency exchange in the U.S., was issued Show Cause orders from eleven U.S. states. These orders mandate Coinbase to present reasons to justify its continued operations within these jurisdictions.