Key points to remember
- Coinbase has acquired a regulatory license to operate in Bermuda.
- The company reportedly intends to use the license to launch a derivatives platform.
- CEO Brian Armstrong has indicated that Coinbase may end up relocating due to the hostile regulatory climate in the United States.
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Coinbase may be considering using its newly acquired regulatory license to operate in Bermuda to launch a derivatives exchange.
Coinbase plans to expand its operations worldwide.
The first US-based crypto exchange announcement in a blog post on Wednesday that it had acquired a regulatory license to operate in Bermuda.
According to a report by Fortune, the company plans to use its newly acquired license to launch a crypto derivatives platform, possibly as early as next week. While Coinbase’s blog post did not mention any such plans, Bloomberg and The Block both reported in March that Coinbase was looking to offer perpetual crypto exchanges on an offshore platform.
“Bermuda was one of the first financial centers to adopt comprehensive digital asset regulations in 2018, and its regulatory environment has long been known for its high level of rigor, transparency, compliance and cooperation,” said declared Coinbase in the post. “Bermuda was chosen as one of our international hubs because the BMA is a highly respected and experienced financial regulator, led by a world-class management team and board.”
The company said it is expanding its presence around the world, including Singapore, Brazil, Canada, the United Arab Emirates, the United Kingdom and the European Union.
Coinbase’s international expansion is taking place amid regulatory uncertainty in the United States. Coinbase CEO Brian Armstrong has repeatedly denounced the Securities and Exchange Commission’s lack of cooperation in establishing a clear regulatory framework for the industry to adhere to. The SEC, for its part, has already communicated to Coinbase its intention to take legal action against the company.
Armstrong admitted this week that Coinbase would consider moving to a friendlier jurisdiction if the regulatory climate in the United States does not improve.
Disclosure: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.