Coinbase Officially Launches Platform for Non-US Institutional Investors in Bermuda: Report

The leading cryptocurrency exchange Coinbase announced the launch of a Bermuda-based marketplace that will serve non-US institutional users, according to a recent report. 

The company has been eyeing other countries to relocate recently due to the regulatory hurdles in America. CEO Brian Armstrong held discussions with the authorities of Britain in April, suggesting that the UK could also become an expansion target for Coinbase.

Disappointed in the US 

Coinbase – the only publicly listed crypto exchange – has recently been on a mission to roll out its operations outside the US because of the regulatory uncertainty that remains a concern in the country. It obtained approval from the Bermuda Monetary Authority in April and displayed intentions to establish an offshore derivatives marketplace in the region in the following days.

According to a recent press release seen by Forbes, Coinbase International Exchange is already on and is available to non-American institutional clients. They could trade bitcoin and ether perpetual futures while all transactions will be settled in USDC. The option allows users to speculate on the price movements of the biggest cryptocurrencies by market capitalization without actually owning them.

While Coinbase assured it remains committed to the US, it outlined that other countries have recognized the potential of the industry and imposed pertinent rules on it. 

“We would like to see the US take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the US,” the firm added.

CEO Armstrong considers the States a key market for the digital asset sector but believes the local regulatory chaos could push numerous crypto entities outside the region. Apart from Bermuda, Coinbase has set eyes on Europe and, more specifically, the United Kingdom.

Armstrong praised Britain for its approach and intention to create a welcoming crypto regulatory environment. He even met with Andrew Griffith – economic secretary to the UK Treasury and Member of Parliament – and said his organization is “excited” to keep investing in the area. 

Another crypto exchange that disclosed expansion plans outside the US is Gemini. The entity, run by the Winklevoss brothers, established a new engineering hub in Gurgaon, India. 

Coinbase’s Issues in the US

The United States Securities and Exchange Commission (SEC) is the agency that causes many of the exchange’s problems in its homeland. It launched an investigation in 2022, alleging that some of the digital currencies listed on the platform are unregistered securities. 

The watchdog doubled down in March this year, issuing a Wells Notice against Coinbase. The enforcement action could be connected to the company’s Earn, Prime, and Wallet products. Armstrong seemed not worried about the charges, stating:

“While we understand that this is all part of the journey to reforming our financial system, we are right on the law, confident in the facts, and welcome the opportunity for Coinbase (and by extension the broader crypto community) to get before a court.”

The firm took legal action against the SEC last week, asking a federal judge to force the agency to answer a months-old petition about whether it would allow certain crypto regulations. Coinbase urged the regulator in 2022 to “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods, including potential rules to identify which digital assets are securities.”