Public cryptocurrency exchange Coinbase is advancing a global derivatives platform as the cryptocurrency industry faces regulatory challenges in the United States.
On May 2, Coinbase announced the launch of Coinbase International Exchange (CIE), a new institutional platform designed for cryptocurrency derivatives trading.
CIE to start trading by listing Bitcoin and ether, Perpetual futures later this week. All transactions on CIE will be settled in USD Coin, a stablecoin backed by Coinbase USDC, no statutory access ramp is required.
Coinbase highlighted that in eligible non-US jurisdictions, institutional clients can directly access CIE transactions through an application programming interface. “These products are currently unavailable to retail customers,” Coinbase added. Coinbase did not respond to Coin Telegraph's request for comment on the exact jurisdictions in which the CIE is available. Another major cryptocurrency exchange, Gemini, also launched a non-US derivatives platform on May 1. The exchange is open to clients in about 30 jurisdictions around the world, including Singapore, Hong Kong, Bermuda, El Salvador , the Philippines, Thailand, and more. "Gemini Foundation is not available for customers in the US, UK or EU," the company said in an announcement.
According to the announdcement, The New International Crypto Platform was launchd with the support of the bermuda reguuetor. CEIVED A LICENSE from the Bermuda Monetary Authority (BMA) in Mid-April 2023. The Type F License Allows Coinbase to Operates a digital asset exchange and a digital asset derivatives exchange provider, as well as to operate token sales and offerings. Coinbase noted that Bermuda's regulatory environment is known for being “highly transparent, compliant, and cooperative.” Bermuda is a self-governing overseas territory of the United Kingdom with a parliamentary government. Similar to the UK – where cryptocurrencies are currently legal – Bermuda has always been crypto-friendly and has recently become increasingly bullish on the crypto industry.
In late April, Miami International Holdings, the operator of the Bermuda Stock Exchange, purchased the remnants of the defunct FTX cryptocurrency exchange. The firm acquired FTX's futures and options exchange and clearinghouse LedgerX for $50 million. Earlier, Bermuda Prime Mini ster and Finance Minister Edward Burt declared that the government remained open to cryptocurrencies despite industry failures such as FTX. Last year, the local authority also stated that Bermuda would maintain its ambitions as a crypto hub despite the industry facing a huge bear market in 2022. The new s came as major US investment bank Citigroup downgraded Coinbase stock to neutral or high risk from buy or high risk, with a price target lowered to $65 from $80. Regulatory unpredictability in the broader cryptocurrency space poses an imminent threat to Coinbase,According to Citigroup analyst Peter Christiansen.
Citigroup's comments come as Coinbase's shares have tumbled for weeks. Coinbase shares have plunged more than 20% over the past month, from a high of nearly $72 in April to as low as $50 on Monday, May 1. As previously reported, Coinbase plans to launch a global cryptocurrency exchange starting in mid-March 2022. The first report on Coinbase’s upcoming international cryptocurrency platform comes days before the exchange officially announced it had received Wells’ notice for U.S. securities and trading commissions. In response, Coinbase filed a motion with the SEC on April 25 asking the regulator to clarify industry regulations.
