Coinbase, one of the well-known crypto exchanges, has announced that it has obtained a regulatory license from the Bermuda Monetary Authority, enabling it to operate on the island.
The Bermuda Digital Asset Business Act of 2018 established a regulatory environment for digital assets in the country, which is known for its rigor and transparency.
According to Coinbase’s blog post, Bermuda was selected as an international hub due to the BMA’s exceptional standards of rigor and collaboration, as well as the leadership of its world-class executive team and board of directors, and its strong affiliations with regulatory agencies worldwide.
The license obtained by Coinbase is a Class F license, which covers the provision of custodial wallet services, operating as a digital asset exchange, and providing other digital asset services.
Coinbase is expanding globally by establishing regulated entities and local operations in high-bar regulatory jurisdictions to facilitate trading solutions and provide products the crypto community demands.
However, the exchange’s mission is to increase economic freedom for every individual and business around the world by building trusted products that expand the utility and adoption of crypto.
Coinbase Plans Offshore Derivatives Exchange In Bermuda
Meanwhile, another update revealed that Coinbase plans to launch an offshore derivatives exchange in Bermuda, according to a source close to the company.
The move comes as part of Coinbase’s efforts to expand its operations and diversify its revenue base. The exchange is expected to launch as soon as next week.
According to the report, the new exchange will offer perpetual swaps and other exotic crypto-related derivatives currently unavailable in the US due to regulatory restrictions. The move will put the exchange in direct competition with Binance, which dominates the global crypto trade.
Coinbase CEO’s warning about crypto firms possibly relocating offshore due to unclear regulations was followed by news of the Bermuda license. Despite this, the exchange is unlikely to leave the US and has stressed its compliance record.
The exchange expands in Abu Dhabi as part of the “Go Broad & Go Deep” strategy. Nevertheless, Bermuda’s entry highlights crypto firms’ preference for business in Hong Kong, Dubai, and Singapore.
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