Coinbase has received a regulatory stamp of approval to start offering perpetual futures trading to retail crypto traders outside the U.S., opening up access to the $5.5 trillion global derivatives market.
Coinbase Extends Perpetual Futures Trading to Retail Traders Abroad
The Bermuda Monetary Authority (BMA) granted Coinbase International Exchange, the company’s new non-U.S. exchange, a license last week to extend its futures trading services to retail investors across the world, except residents in the U.S. With the approval, Coinbase is poised to expand its derivatives services to more customers globally through its Coinbase Advanced platform in the coming weeks.
“As the most trusted and safest name in crypto, Coinbase will operate with maximum transparency, employ a robust risk framework, and meet the high-bar regulatory and compliance standards of the BMA,” the Coinbase announcement said.
The company sees regulatory approval as an opportunity to further its mission of updating the global financial system by providing users around the world with more access to regulated derivatives. The announcement discloses that Coinbase will follow rigorous risk management and compliance standards set by Bermuda regulators.
The move comes as other exchanges face increased regulatory scrutiny in the United States by regulators like the U.S. Securities and Exchange Commission. Coinbase said its futures contracts have already seen over $5.5 billion in notional trading volume since launching earlier this year.
The San Francisco-based company said its futures trading services will only be available to eligible retail investors outside the U.S. after passing the company’s assessment checks. Coinbase said its futures accounts will be backed by usd coin (USDC) reserves and managed by an experienced risk team.
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