Coinbase Launches International Derivatives Exchange for Non-US Institutional Traders
by Coinbase, the biggest cryptocurrency exchange in the US, which is headquartered in San Francisco, has disclosed the unveiling of its international derivatives exchange. Institutional crypto traders outside the US will be able to access the exchange, known as Coinbase International Exchange, which will offer perpetual futures contracts for Bitcoin and Ethereum. The trades conducted on the exchange will be settled using USD Coin (USDC).
Regulatory Approval and Security Features
Regulatory clearance for the new platform has been granted to Coinbase by the Bermuda Monetary Authority (BMA). The exchange will have multiple security measures in place, such as dynamic margin requirements, real-time 24/7 risk management, and strict compliance standards. Initially, the exchange will only be accessible to institutional clients outside the US.
Coinbase’s Plan for Global Expansion
The launch of the Coinbase International Exchange is part of the company’s plans to scale globally and diversify its business amid souring relations with American regulators. Coinbase received a notice from the US Securities and Exchange Commission earlier in March indicating the regulator’s plan to sue the crypto firm over several business lines.
Perpetual Futures and Leverage
Perpetual futures have gained popularity among crypto traders who leverage them to hedge against losses or make speculative investments on the price of underlying tokens, without any expiration date. The contracts on the newly launched exchange will offer a leverage of up to five times initially.
Statement from Coinbase
Emmanuel Goh, the Head of Coinbase International Exchange, was quoted by Decrypt as saying that the launch of Coinbase International Exchange is a further step in their plan to expand globally, by broadening and deepening their operations and covering more territories. This plan was first unveiled in May 2022.
Conclusion
The launch of the Coinbase International Exchange is a significant move for Coinbase, as it expands its business globally and offers institutional investors more options for trading cryptocurrency derivatives. With its security features and regulatory approval, the exchange is poised to attract traders who are looking for a reliable and secure platform to trade perpetual futures.
Disclaimer
The information presented in this Blogpost is solely for educational and informative purposes and should not be misconstrued as investment, financial or legal advice. Cryptocurrencies are a highly unstable and speculative market and their worth is susceptible to substantial fluctuations. Therefore, it is advisable to conduct personal research and seek counsel from qualified experts before making any financial decisions.
