Coinbase International Exchange, operating under a Class F license from the Bermuda Monetary Authority (BMA), has announced a significant regulatory approval. It allows the platform to provide perpetual futures trading services to non-U.S. retail clients. The exchange, which initiated its operations in May 2023, was already offering cryptocurrency derivatives to institutional clients. With this new regulatory nod, it is expanding its offerings to retail customers, allowing them to engage in regulated perpetual futures contracts on the Coinbase Advanced platform.
These perpetual futures accounts are administered by Coinbase Bermuda and fall under the jurisdiction and oversight of the BMA. Coinbase highlighted that nearly 75% of cryptocurrency trading volume emanates from the derivatives market, predominantly the domain of institutional players. By gaining these regulatory approvals, Coinbase aims to facilitate the entry of retail traders into the cryptocurrency derivatives market. Notably, Coinbase operates without market making involvement, and its liquidity is sourced from established independent liquidity providers who have undergone rigorous compliance assessments.
The Coinbase International Exchange is accessible only to non-U.S. consumers in specific countries, and customers must undergo assessments to determine their eligibility for opening a Coinbase Advanced trading account. This recent approval for offering perpetual futures to retail clients follows closely on the heels of another approval granted by the National Futures Association (NFA), allowing Coinbase to provide cryptocurrency futures investments to qualified institutional clients in the United States. Despite ongoing regulatory challenges with the U.S. Securities and Exchange Commission, Coinbase continues to expand its global presence and services.
