Key Features of the New Exchange
Unlike traditional futures, perpetual futures do not have an expiration period, allowing traders to hold their positions indefinitely. Coinbase is focused on expanding its services globally in a safe and compliant manner, with strong risk management at its core. The CIE will settle trades in USD Coin (USDC) and include several security features, such as real-time 24/7 risk management, dynamic margin requirements, and strict compliance standards.
Today Coinbase launched Coinbase International Exchange @CoinbaseIntExch and will begin by offering BTC & ETH perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside of the U.S.https://t.co/OzhbgJlZ2K
— Coinbase 🛡️ (@coinbase) May 2, 2023
Who Can Access the Coinbase International Exchange?
While retail customers won’t initially have access to the platform, institutional clients in eligible non-US jurisdictions can take advantage of the CIE through an application programming interface (API). Coinbase believes that the timing is perfect for this international expansion, as more and more markets are moving forward with regulatory frameworks to become crypto hubs.
Regulatory Support from Bermuda
Bermuda, known for its high level of transparency, compliance, and cooperation in its regulatory environment, has granted Coinbase a Class F License, allowing the company to operate a digital asset exchange and digital asset derivatives exchange provider. This license also permits Coinbase to engage in activities like token sales and issuance.
Bermuda’s Crypto-Friendly Stance
As a self-governing British overseas territory with a parliamentary government, Bermuda has been increasingly bullish on the crypto industry. The island’s Premier and Finance Minister, Edward Burt, has expressed openness to crypto, and local authorities continue to pursue their ambitions as a crypto hub, despite industry setbacks.
Feeling the energy at @consensus2023! Each year industry leaders, founders, developers and enthusiasts meet up for this innovative conference. Earlier today I joined @mikejcasey, @CoinDesk Chief Content Officer for a 1:1 mainstage interview to dive into ‘Bermuda’s Strict But… pic.twitter.com/cIHdSkHaRF
— Premier David Burt (@BermudaPremier) April 29, 2023
Challenges and Opportunities in the Crypto Industry
Amid regulatory challenges in the United States, Coinbase has been locked in a battle with the US Securities and Exchange Commission (SEC) since July 2022, after the agency charged ex-Coinbase product manager Ishan Wahi and his brother Nikhil with insider trading. In April, Coinbase filed a motion against the SEC, seeking clarification on industry regulations.
Looking Forward
The launch of the Coinbase International Exchange signifies a new chapter for institutional clients in the crypto derivatives trading space. As the exchange expands its global footprint, it brings the most trusted name in crypto to the international market, potentially driving further innovation and growth in the industry.
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Key Points
What is the Coinbase International Exchange?
It is a global derivatives platform for institutional clients, initially offering Bitcoin and Ethereum perpetual futures.
How does the Coinbase International Exchange differ from traditional futures trading?
Perpetual futures on the CIE do not have an expiration period, allowing traders to hold their positions indefinitely.
Who can access the Coinbase International Exchange?
Institutional clients in eligible non-US jurisdictions can access the platform through an API. Retail customers will not initially have access.
What regulatory support does Coinbase have from Bermuda?
Coinbase has obtained a Class F License from the Bermuda Monetary Authority (BMA), allowing the company to operate a digital asset exchange and digital asset derivatives exchange provider, as well as engage in activities like token sales and issuance.
Why is the launch of the Coinbase International Exchange significant?
The CIE represents a new chapter for institutional clients in the crypto derivatives trading space, expanding Coinbase’s global footprint and further solidifying its position as a trusted name in the international market.
