Coinbase International Exchange will provide institutional clients outside the US with BTC and ETH contracts and up to 5x leverage.
Cryptocurrency Exchange Coinbase has launched an international exchange to provide its busy institutional clients with an expanding portfolio of crypto services. According to the company, the new Coinbase International Exchange lists Bitcoin (BTC) and Ether (ETH) futures.
in Official announcementCoinbase said it has obtained regulatory authorization from the Bermuda Monetary Authority (BMA). The company said Coinbase International ExchangePerpetual futures trading is available to “in eligible jurisdictions outside the United States”. However, it did not specify eligibility requirements or countries in which institutional clients can trade.
The official announcement promises that the international exchange provides safe customer protection, high-performance trading technology and a robust risk management framework to protect customers. Coinbases says customers can enjoy round-the-clock risk management, liquidity from third-party market makers, and flexible margin requirements. Other features include a liquidation framework that meets compliance standards, and an exchange with sufficient capital to withstand volatile market events.
Coinbase says the contracts will initially allow up to 5x in leverage, settling all trades in USDC without any uphill climbs. Perpetual contracts, unlike traditional futures contracts, allow traders to hold their positions for as long as they wish. These futures contracts do not have an expiration date and thus do not require traders to execute a trade at a particular point in time.
Coinbase International Exchange is not open to US customers
The new Coinbase International Exchange platform is not available in the United States. According to Coinbase’s announcement, the unfavorable US crypto climate is to blame:
“Rest assured that Coinbase is committed to the US, but countries around the world are increasingly moving forward with responsible crypto regulatory frameworks to strategically position themselves as digital currency hubs. We would like to see the US take a similar approach rather than regulation through enforcement which has resulted in to a disappointing trend for the development of digital currencies in the United States.”
The US Securities and Exchange Commission (SEC) has been tough on cryptocurrency amid a massive and ongoing crackdown. In March, Coinbase received a notice from Wells from the agency, warning of possible charges. The notice said the SEC has identified potential violations and may take formal action.
Coinbase, in official response, said he was “disappointed” with the development, explaining that the notice did not contain enough information to elicit an adequate response. The exchange also stated that the notice follows “multiple proposals to the SEC” seeking information and clarity on the registry and related matters. Coinbase said the SEC has not responded to any of its proposals.
According to the exchange in the statement, the SEC requested a possible resolution after an investigation last year. After the request, Coinbase said it spent millions of dollars creating two different registration models since there is no current way to register a cryptocurrency exchange. The Securities and Exchange Commission has not responded. Coinbase has also asked the Securities and Exchange Commission to ask questions about any assets on its platform. Nor did the SEC specify. Coinbase said it met with the SEC at least 30 times over a 9-month period, to no avail.
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify cryptocurrency stories down to the bare essentials so that anyone anywhere can understand without much background knowledge. When he’s not deep into cryptocurrency stories, Tolo enjoys music, loves to sing, and is a movie lover.
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