- Coinbase is reportedly launching a new crypto derivatives exchange next week
- This could place the exchange as a direct competitor to established crypto exchange Binance
Coinbase – the leading American crypto exchange – has progressed in its plans to expand its international presence. The crypto exchange received a license to operate in Bermuda from the Bermuda Monetary Authority (BMA).
Additionally, the company reportedly plans to set up an offshore derivatives crypto exchange in this region, according to a report by Fortune. Moreover, the launch is reportedly set to happen as early as next week.
Speaking about its license gain in Bermuda, Coinbase said,
“Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation. Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator”
Coinbase and its expansion plans
When asked for a comment on the recent development, Coinbase’s spokesperson pointed out the firm’s expansion plans to Abu Dhabi. In a blog post published on 19 April, the crypto exchange disclosed that it was in talks with UAE’s Financial Services Regulatory Authority (FSRA). The discussion centers on the firm’s intention to get a license for regulated exchange in the region.
Notably, a similar report made headlines a month ago. The exchange was reportedly making this move to expand its global customer base. This plan allows the firm to tap into the side of the market that is dominated by Binance, which is currently the biggest exchange in terms of trade volume. The firm also discussed the plan with institutional clients, investment firms, and market makers.
Alternative plan for US regulatory scrutiny
The latest development came right when Brian Armstrong – CEO of Coinbase – stated that the firm would look for alternate solutions to tackle US regulatory scrutiny. The crypto exchange recently received a Wells Notice from the U.S. Securities and Exchanges Commission (SEC). And, it was concerning the exchange’s services, including its Earn program. Notably, a Wells Notice gives a heads-up to companies about possible enforcement action.
In the wake of this and other regulatory clampdowns, Armstrong stated that the company may consider relocating out of the United States. Moreover, the CEO placed the United Kingdom as a possible alternative for the states, while highlighting that it was its second-largest market by revenue.
