The international exchange is offering Bitcoin and Ethereum “perpetual futures”, a type of trading contract which is banned in the US.
Coinbase has announced an international crypto exchange offering cryptocurrency derivatives for users outside of the US, as its regulatory tensions in the country continue to mount.
The international exchange has been launched in Bermuda and will offer Bitcoin and Ethereum “perpetual futures” for users. This type of offering is currently banned in the US.
Perpetual futures are a type of contract that – unlike traditional futures – has no expiration date, which allows traders to hold their positions indefinitely.
Coinbase claims these contracts accounted for nearly 75pc of global crypto trading volume last year, creating “highly-liquid markets” and giving traders “additional versatility in their trading strategies”.
“Building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the US,” Coinbase said.
“As more and more markets are moving forward with regulatory frameworks to become crypto hubs, we believe the moment is right to launch this international exchange.”
The international crypto exchange has received regulatory approval from the Bermuda Monetary Authority to conduct its operations.
Coinbase’s announcement follows its decision to take legal action against the US Securities and Exchange Commission, compelling the regulator to create clearer rules regarding crypto securities.
In a statement on the international exchange launch, Coinbase said it remains committed to the US, but noted that other countries are moving forward with regulation to “strategically position themselves as crypto hubs”
“We would like to see the US take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the US,” Coinbase said.
The EU made a significant step last month in its efforts to govern and safeguard the crypto industry. The EU Parliament voted overwhelmingly in favour of the Markets in Crypto Assets (MiCA) legislation, which creates a set of common rules around the supervision of crypto assets and cryptocurrencies.
The MiCA legislation also creates new rules on consumer protection, market manipulation, financial crime and environmental safeguards.
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