Coinbase Wins Approval to Offer Perpetual Futures Trading to Non-US Retail Customers
Summary:
Coinbase International Exchange has secured additional regulatory approval to offer perpetual futures trading to non-US retail consumers. This comes after the crypto platform, regulated by the Bermuda Monetary Authority, was approved to provide crypto derivative services to institutional clients. With this new approval, retail traders will now have increased access to the heavily institution-dominated crypto derivatives market. The approval follows a month after Coinbase received the green light from the National Futures Association to offer crypto futures investments to qualified institutional clients in the US.
Coinbase International Exchange, under the regulatory authority of Bermuda Monetary Authority (BMA) class F license, declared they’ve been granted additional regulatory approval, which will permit the platform to provide non-US retail consumers with sustained futures trading. This crypto platform, established in May 2023, had already made available crypto derivative services for institutional clientele. With the newly acquired regulatory approval, the company will extend access to approved perpetual futures contracts on the Coinbase Advanced platform to eligible customers within a few weeks. Coinbase Bermuda Limited, regulated by BMA, will oversee the Perpetual Futures accounts.
According to the announcement by the crypto exchange, about 75% of crypto transactions come from the derivatives market. This fresh regulatory endorsement will afford retail traders greater access to the frequently institution-dominated crypto derivatives market. Coinbase also highlighted that it does not partake in market making – liquidity on the exchanges is supplied by verified, standalone liquidity providers who have undergone comprehensive compliance audits.
The crypto exchange hinted that their platform would serve as a safe, regulated access point for retail traders keen on entering the derivatives market. Moreover, only non-US consumers living in certain countries can avail of the services offered by Coinbase International Exchange. The customer’s eligibility for this product is determined before they are allowed to open a Coinbase Advanced trading account.
The recent approval for Coinbase International to extend perpetual futures to retail customers comes on the heels of the platform's approval by the National Futures Association (NFA) to offer crypto futures investments to qualified institutional clients in the US, a month ago.
Even while embroiled in a regulatory dispute with the U.S. Securities and Exchange Commission regarding its services, Coinbase continues to make steady progress outside the U.S. The regulatory body initiated a lawsuit against Coinbase in early June, charging that the crypto exchange broke local securities laws by selling unregistered securities.
Published At
9/28/2023 12:58:08 PM
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