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While the cryptocurrency industry faces big regulatory challenges in the United States, public cryptocurrency exchange Coinbase is moving forward with a global derivatives platform.
On May 2, Coinbase announced the launch of Coinbase International Exchange (CIE), a new institutional platform dedicated to trading cryptocurrency derivatives.
Later this week, CIE will roll out trading by listing Bitcoin (BTC) and Ether (ETH) perpetual futures. All trading on CIE will be in the Coinbase-supported USD Coin (USDC) stablecoin, which does not require fiat input.
Coinbase emphasized that direct access to trading on the CIE is available to institutional clients via an API in eligible jurisdictions outside of the US. “These products are currently not available to retail customers,” Coinbase added.
According to the announcement, a new international cryptocurrency platform is being launched with the support of Bermuda’s regulators. As previously reported, Coinbase received a license from the Bermuda Monetary Authority (BMA) by mid-April 2023. The Class F license allowed Coinbase to operate a digital asset exchange and a digital asset derivatives exchange service provider, as well as conduct activities such as token sales and issuance.
Coinbase noted that Bermuda’s regulatory environment is known for “a high level of transparency, compliance, and cooperation.”
Bermuda is a self-governing British overseas territory with a parliamentary government. Similar to the United Kingdom, where cryptocurrencies are currently legal, Bermuda has been somewhat crypto-friendly, becoming increasingly optimistic about the crypto industry in recent times.
At the end of April, Miami International Holdings, operator of the Bermuda Stock Exchange, bought the remains of the collapsed FTX cryptocurrency exchange. The company specifically bought the FTX futures and options exchange and the LedgerX clearing house for $50 million.
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Earlier, Bermuda’s Prime Minister and Finance Minister Edward Burt said the government remains open to crypto despite industry failures such as FTX. Local authorities also said last year that Bermuda would maintain its ambitions as a crypto hub despite the industry facing a massive bear market in 2022.
As previously reported, Coinbase planned to create a global cryptocurrency exchange in mid-March 2022. The first reports of the upcoming international cryptocurrency platform Coinbase came just a few days before the exchange officially announced that it had received a Wells notice from the US. Security and Exchange Commission. In response, Coinbase filed a motion against the SEC on April 25, asking the regulator to clarify industry rules.