Regulatory uncertainty in the United States pushes Coinbase to open an international crypto derivatives exchange.
Coinbase, an American publicly traded company that operates a cryptocurrency exchange platform, has launched the Coinbase International Exchange (CIE).
According to the announcement shared on May 2nd, the new institutional platform is tailored for trading crypto derivatives.
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Based on the announcement, trading for Bitcoin (BTC) and Ether (ETH) is set to begin later this week. All CIE trading will be settled in the Coinbase-backed stablecoin USD Coin (USDC), eliminating the need for fiat on-ramps.
Coinbase emphasizes that direct access trading on the CIE is exclusively available to institutional clients in eligible, non-US jurisdictions via an application programming interface. Upon the release, the product is "not available to retail customers at this time."
When it comes to offered services, Coinbase noted:
Coinbase International Exchange brings a high standard of customer protection, a robust risk management framework, and high-performance trading technology.
According to the announcement, the CIE's launch is backed by regulators in Bermuda. It is worth noting that Coinbase secured a license from the Bermuda Monetary Authority (BMA) by mid-April 2023.
The Class F License allows Coinbase to operate as a digital asset exchange, digital asset derivatives exchange provider and engage in activities such as token sales and issuance.
Coinbase highlighted that Bermuda's regulatory environment is well-known for its "high level of transparency, compliance, and cooperation."
Reports of Coinbase's plan to establish a global crypto exchange surfaced in mid-March 2022. A few days before the official announcement, Coinbase received a Wells Notice from the United States Securities and Exchange Commission (SEC).
Coinbase recently filed a motion against the SEC on April 25th, requesting clarity on industry regulations.