Coinbase Ventures, U.S.’s largest centralized crypto exchange launched an international exchange for cryptocurrency derivatives. Coinbase looks to expand its global footprint amid escalating tensions between the crypto sector and regulators in the United States.
Coinbase International Exchange will allow institutional users based in eligible jurisdictions outside of the US, to trade perpetual futures. In 2022 perpetual futures accounted for nearly 75% of global crypto trading volume, creating highly liquid markets and offering traders additional versatility in their trading strategies.
Today Coinbase launched Coinbase International Exchange @CoinbaseIntExch and will begin by offering BTC & ETH perpetual futures settled in USDC with up to 5x leverage to institutional clients in eligible jurisdictions outside of the U.S.https://t.co/OzhbgJlZ2K— Coinbase 🛡️ (@coinbase) May 2, 2023
Coinbase believes that building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the US. As more markets are moving forward with regulatory frameworks to become crypto hubs, coinbase thinks it is the right moment to launch this international exchange.
Coinbase International Exchange brings a high standard of customer protection, a robust risk management framework, high performance trading technology, and more like:
- Provides real time 24/7, 365 risk management.
- Liquidity provided by external market makers and no proprietary trading.
- Dynamic margin requirements and collateral assessments.
- Liquidation framework that meets rigorous compliance standards.
- Well capitalized exchange to support tail market events.
It has listed BTC and ETH perpetual futures contracts. All trading is settled in USDC so there's no need for fiat on ramps. The contracts initially offer up to 5x leverage. Direct access trading via API is available to institutional clients in eligible, non-US jurisdictions. These products are not available to retail customers at this time.
Unlike traditional futures, where buyers and sellers are obligated to execute the deal on a set date regardless of market conditions, perpetual futures don’t have an expiration period, meaning that traders can hold their positions indefinitely.
Coinbase International Exchange stated that it is proud to work with the Bermuda Monetary Authority (BMA). BMA is a highly respected and experienced financial regulator that is led by an outstanding executive team and board of directors. Bermuda’s regulatory environment is known for a high level of transparency, compliance, and cooperation. The BMA is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world. This helps to ensure that Bermuda's financial sector is in line with international standards and best practices.
Coinbase said "We would like to see the U.S. take a similar approach instead of regulation by enforcement, which has led to a disappointing trend for crypto development in the U.S.".
Also Coinbase has recently sued the SEC, expecting the securities to provide regulatory clarity for the crypto industry.
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