This is where Coinbase is reportedly planning to set up its crypto derivatives exchange

This is where Coinbase is reportedly planning to set up its crypto derivatives exchange


  • Coinbase is reportedly launching a new crypto derivatives exchange next week
  • This could place the exchange as a direct competitor to established crypto exchange Binance

Coinbase – the leading US crypto exchange – has moved forward in its plans to expand its international presence. The crypto exchange received a license to operate in Bermuda from the Bermuda Monetary Authority (BMA).

In addition, the company is reportedly planning to set up an offshore derivative crypto exchange in this region, according to a Fortune report. Moreover, the launch will reportedly take place as early as next week.

Speaking about the license win in Bermuda, Coinbase said,

“Bermuda was one of the first financial centers to adopt comprehensive digital asset regulation in 2018, and its regulatory environment has long been known for a high level of rigor, transparency, compliance and cooperation. Bermuda was chosen as one of our international hubs, as the BMA is a highly respected and experienced financial regulator.”

Coinbase and its expansion plans

When asked for comment on the recent development, Coinbase’s spokesperson pointed to the company’s expansion plans into Abu Dhabi. In a blog post published on April 19, the crypto exchange revealed that it was in talks with the UAE’s Financial Services Regulatory Authority (FSRA). The discussion revolves around the company’s intention to obtain a license for regulated exchange in the region.

In particular, a similar report made headlines a month ago. The exchange reportedly made this move to expand its global customer base. This plan allows the firm to tap into the side of the market dominated by Binance, which is currently the largest exchange in terms of trading volume. The firm also discussed the plan with institutional clients, securities firms and market makers.

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Alternative Plan for US Regulatory Scrutiny

The latest development came as Coinbase CEO Brian Armstrong said the firm would look for alternative solutions to deal with US regulatory scrutiny. The crypto exchange recently received a Wells Notice from the US Securities and Exchanges Commission (SEC). And that applied to the exchange’s services, including the Earn program. In particular, a Wells notice provides notice to companies of possible enforcement action.

In the wake of this and other regulatory interventions, Armstrong stated that the company may consider moving out of the United States. Furthermore, the CEO positioned the UK as a possible option for the States, while highlighting that it was the second largest market by revenue.

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