Coinbase is now enabled to sell perpetual Bitcoin futures

In a groundbreaking development for the cryptocurrency ecosystem, Coinbase International Exchange has received approval from the Bermuda Monetary Authority (BMA) to introduce trading of (Bitcoin and non-Bitcoin) perpetual futures for non-U.S. retail customers. 

This key achievement underscores Coinbase’s ongoing commitment to transparency, compliance, and global accessibility in the cryptocurrency derivatives industry.

Coinbase receives regulatory approval for non-US retail Bitcoin perpetual futures trading

Coinbase International Exchange, the renowned cryptocurrency platform, has reached an important milestone by gaining regulatory approval from the Bermuda Monetary Authority (BMA) to introduce perpetual futures trading for eligible non-U.S. retail customers. 

This development marks a pivotal moment in the world of cryptocurrency derivatives, positioning Coinbase as a beacon of trust and compliance in an evolving landscape.

The BMA’s stamp of approval reaffirms Coinbase’s commitment to adhering to the highest regulatory and compliance standards. As a platform renowned for its transparency and security, Coinbase will bring these core values to the realm of perpetual futures trading.

Coinbase Advanced, a robust retail trading platform, will be the channel through which eligible customers will have access to regulated perpetual futures contracts. This expansion aims to provide a wider audience with opportunities in the regulated derivatives market.

Coinbase’s strategic approach is in line with Phase II of its “Go Broad, Go Deep” strategy, which emphasizes collaboration with forward-looking global regulators. 

This partnership with the BMA underscores Coinbase’s mission to facilitate innovation in the crypto space and promote economic freedom worldwide.

Security and trust from institutions for Coinbase

In a climate where cryptocurrency exchanges face increased regulatory scrutiny and geographic restrictions, Coinbase stands out as a trusted and secure operator. 

The global cryptocurrency derivatives market, which accounts for about 75 percent of global cryptocurrency trading volume, clearly reflects the demand for derivatives. 

However, only a few platforms meet the rigorous security and transparency standards that traders require to trade with confidence.

Coinbase’s perpetual futures contracts are a testament to its ongoing commitment to compliance. These contracts operate within the strict framework established by the BMA, upholding high standards of risk management, compliance, and user protection.

Key distinctions of the new Coinbase International Exchange

Coinbase International Exchange is distinguished in several key respects:

Asset Security: Coinbase’s publicly filed and audited financial statements demonstrate the practice of holding client assets on a 1:1 basis, ensuring the highest level of asset security.

Capitalization: Coinbase International Exchange is well capitalized through its Insurance Fund and Liquidity Support Program, which is funded in USDC, a highly liquid stablecoin.

Expert Risk Management: Coinbase boasts an experienced risk management team with members who possess decades of experience in managing trading and credit activities through economic cycles.

Market integrity: Coinbase does not engage in market making. Liquidity on its exchanges is provided by reputable and independent liquidity providers who undergo comprehensive compliance reviews.

Expanded Access: Effective immediately, non-U.S. retail traders can verify their eligibility to trade perpetual futures on Coinbase Advanced, and official trading will begin in the near future. To stay informed of the latest updates, follow @CoinbaseIntExch on Twitter.

Institutional opportunities:

For institutional investors outside the United States interested in exploring perpetual futures trading on Coinbase International Exchange, inquiries can be directed to [email protected].

Eligibility and Disclaimer:

It is important to note that Coinbase International Exchange is available exclusively to non-U.S. customers in select jurisdictions. To establish a Coinbase Advanced trading account, customers must undergo standard assessment checks to determine eligibility. 

Regulatory oversight:

Perpetual Futures accounts fall under the purview of Coinbase Bermuda Limited (dba Coinbase International Exchange), a regulated entity under the supervision of the Bermuda Monetary Authority (BMA).

Conclusions 

In conclusion, Coinbase obtaining regulatory approval from the Bermuda Monetary Authority (BMA) to launch perpetual futures trading for non-U.S. retail clients represents a monumental step forward in the world of cryptocurrency derivatives. 

This milestone not only strengthens Coinbase’s position as a beacon of trust and compliance, but also opens new horizons of opportunity for retail traders in a market that craves security, transparency, and innovation. 

Coinbase continues to lead the charge toward a more inclusive and regulated crypto landscape, setting a formidable precedent for the future development of the industry by offering a glimpse into the unlimited potential of blockchain and cryptocurrency technologies on a global scale.


Source: https://en.cryptonomist.ch/2023/09/29/coinbase-is-enabled-perpetual-bitcoin-futures/