Just a day after revealing its possible transfer, Coinbase, the largest crypto exchange in the US, announce Its latest achievement is obtaining a Class F license from the Bermuda Monetary Authority (BME) under the Business Digital Assets Act.
This sparked speculation among the crypto community about how the cryptocurrency exchange plans to handle the current regulatory scrutiny of cryptocurrencies in the United States away from relocating to the region.
The offshore exchange will be launched sooner than expected
After obtaining the license, Coinbase is He said The offshore derivatives exchange platform will be launched as soon as next week. External exchange will allow for commerce One of the permanent swaps associated with cryptocurrencies.
According to the report, the Class F license granted to Coinbase enables the company to engage in various activities, including selling and issuing tokens. Additionally, it gives permission to Coinbase to operate as a digital asset exchange, as well as a digital asset derivatives provider.
The stock exchange indicated that it chose Bermuda as one of its international centers due to the extensive experience in its financial regulations.
Coinbase added:
Bermuda was one of the first financial centers to pass a comprehensive digital asset regulation in 2018, and its regulations organizational Environment has long been known for its high level of accuracy, transparency, compliance and collaboration.
Notably, this news was revealed alongside the company’s update on the “global scale of expansion and depth.” According to Coinbase, it will create local structured entities and operations “to enable expansion on a global scale. In addition, it has so far made progress in companies such as Brazil, Canada, Singapore, Europe, and the United Arab Emirates.
The US-based cryptocurrency exchange noted:
Our global approach will be consistent with our approach in the US: we will work with governments and regulators in different markets, and we will always aim to be the most trusted and compliant crypto company in any market.
Coinbase reveals planned relocation from the United States
On Tuesday, Brian Armstrong, Coinbase CEO, called for clearer regulations on cryptocurrency in both the US and the UK. In doing so, Armstrong argues that without such laws, corporations might as well be forced to evolve in “outer havens”, Where they may be subject to less oversight and regulation.
This was revealed during an industry conference organized by Innovate Finance.
Armstrong was killed The failure of the FTX exchange in the Bahamas Last year as evidence of the need for clearer regulations.
The CEO believes that offshore sites with less regulatory oversight pose a threat to the legitimacy of the cryptocurrency industry.
As cryptocurrency gains popularity around the world, governments are struggling to keep up with regulations. There is no obvious regulatory frameworks This has led to different countries approaching cryptocurrency regulation differently, leading to many companies operating in regulatory gray areas. This makes it difficult for companies like Coinbase to operate effectively while also complying with the law.
Armstrong urged the United States and the United Kingdom to set an example for other countries and set clear guidelines for regulating cryptocurrencies. If both countries can develop effective regulatory frameworks for the industry, this could lead to an increase in the legality and growth of cryptocurrencies.
Regardless, as cryptocurrency continues to rise in popularity, it is imperative that governments implement clear and transparent regulations to protect investors and promote legitimate growth in the industry.
Meanwhile, the cryptocurrency industry seems to have had a little exposure to the recent news. Over the past 24 hours, the global cryptocurrency market cap has fallen by 5% with the total value dropping below $1.2 trillion.
Featured image from Shutterstock, chart from TradingView