Key takeaways:
- Additional regulatory permission has been granted to Coinbase International Exchange, a class F license holder from the Bermuda Monetary Authority.
- The cryptocurrency platform will start providing qualifying users with access to regulated perpetual futures contracts on the Coinbase Advanced platform in the upcoming weeks.
Additional regulatory permission has been granted to Coinbase International Exchange, a class F license holder from the Bermuda Monetary Authority (BMA), allowing the platform to provide perpetual futures trading to non-US retail users.
Coinbase International, which debuted in May 2023, has already provided institutional customers with services for cryptocurrency derivatives.
With the most recent regulatory permission, the cryptocurrency platform will start providing qualifying users with access to regulated perpetual futures contracts on the Coinbase Advanced platform in the upcoming weeks.
The Perpetual Futures accounts are managed by Coinbase Bermuda Limited, which is subject to BMA regulation, the exchange was warned.
The crypto exchange asserted in its release that the derivatives market accounts for roughly 75% of cryptocurrency trading volume and that the latest regulatory license would enable regular traders to access the institutional-dominated crypto futures market.
According to the cryptocurrency platform, Coinbase does not engage in market making, which also claimed that established, independent liquidity providers that have completed rigorous compliance assessments provide liquidity on the exchanges.
To access the futures market safely and legally, Coinbase asserted that its platform would prove to be the ideal entry point for individual traders.
Customers are assessed to determine their eligibility for this product before they can open a Coinbase Advanced trading account, and Coinbase International Exchange is only available to non-US users in a select few nations.
Just one month ago, the National Futures Association (NFA) permitted Coinbase International to provide perpetual futures to eligible institutional clients in the US. The platform has been authorized to do the same for retail consumers.
Despite a legal dispute over its services with the US Securities and Exchange Commission (SEC), Coinbase has continued to advance outside of the United States. Early in June, the regulator sued Coinbase, claiming that the exchange had sold unregistered securities violating national securities regulations.
