Coinbase International Exchange has received a nod from Bermuda’s financial watchdog, the Bermuda Monetary Authority (BMA), to extend its perpetual futures trading to non-U.S. retail customers. This move is a significant milestone in the company’s global expansion strategy, aptly named “Go Broad, Go Deep.” Moreover, the approval comes at a crucial juncture, as the crypto industry faces heightened regulatory scrutiny worldwide.
Tapping into the lucrative derivatives market
The crypto exchange has been a key player in the derivatives market, which accounts for nearly 75% of global crypto trading volume. With the latest approval, Coinbase aims to democratize access to this largely institution-dominated market. The company plans to roll out regulated perpetual futures contracts on its Coinbase Advanced platform in the coming weeks. Additionally, the exchange assures that liquidity will be provided by established, independent providers who have met stringent compliance standards.
Coinbase’s perpetual futures trading services were initially available only to institutional clients. However, the recent regulatory approval will now allow retail traders to participate in this market. These accounts will be maintained by Coinbase Bermuda and will operate under the regulatory framework established by the BMA. This move is expected to offer retail traders a secure and competent gateway to the derivatives market.
Despite facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) over alleged violations of local securities laws, Coinbase continues to make strides in markets outside the United States. Last month, the platform received approval from the National Futures Association (NFA) to offer crypto futures investments to eligible institutional clients in the U.S. This shows the company’s resilience and adaptability in navigating complex regulatory landscapes.