Coinbase International Exchange, a cryptocurrency platform, has announced that it has received additional regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures trading to non-United States retail customers. This approval comes in addition to their existing class F license from the BMA.
Coinbase International, which already provides crypto derivatives services to institutional clients, will now be able to offer regulated perpetual futures contracts to eligible retail customers on its Coinbase Advanced platform. The accounts for these futures contracts will be maintained by Coinbase Bermuda and regulated by the BMA.
The platform claims that nearly 75% of cryptocurrency trading volume comes from the derivatives market, which has historically been dominated by institutional players. The recent regulatory approval will open up this market to retail traders, giving them the opportunity to participate in the cryptocurrency derivatives market.
It is important to note that Coinbase does not engage in market-making. Instead, the liquidity on the platform is provided by established and independent liquidity providers who have undergone thorough compliance reviews. This ensures a fair and transparent trading environment for all users.
Coinbase believes that its platform will serve as the ideal gateway for retail traders to access the derivatives market securely and competently. However, it is worth mentioning that only non-U.S. consumers in a selected number of countries can use the Coinbase International Exchange. Additionally, customers are required to undergo a testing process to evaluate their eligibility before they can open a Coinbase Advanced trading account.
This approval for perpetual futures trading for retail customers comes shortly after Coinbase received approval from the National Futures Association (NFA) to offer crypto futures investments to eligible institutional clients within the United States.
Despite facing regulatory challenges from the U.S. Securities and Exchange Commission (SEC), Coinbase has been making progress and expanding its services outside of the U.S. In early June, the SEC filed a lawsuit against Coinbase, alleging that the exchange had violated local securities laws by selling unregistered securities. However, Coinbase has continued to grow and expand its offerings globally.
Overall, the regulatory approval received by Coinbase International Exchange to offer perpetual futures trading to non-U.S. retail customers demonstrates the platform’s commitment to expanding its services and providing opportunities for retail traders in the cryptocurrency derivatives market. As Coinbase continues to navigate through its regulatory challenges, it remains focused on providing a secure and compliant trading environment for all users.