Coinbase Introduces International Exchange to Offer Crypto Perpetual Futures
Perpetual futures are derivatives contracts that do not have an expiration date. However, such future contracts are banned in US jurisdiction.
Therefore, Coinbase has decided to start its international crypto exchange platform with perpetual futures contracts for Bitcoin and Ethereum. It means that these digital asset derivatives are only available for the international clients of Coinbase.
At the same time, they are set to offer around 5 times leverage for the cryptocurrency traders who are using the new international exchange option. Coinbase has confirmed the launch of an international exchange platform for consumers around the world.
However, this new platform is directed toward commercial entities in the global market. The new initiative is still awaiting a response from the Bermuda Monetary Authority or BMA.
Coinbase is Expanding Its Business Operations
Coinbase has made an important step towards scaling its business operations. The plans for this new venture have been in the works since May last year. The head of Coinbase International Exchange, Emmanuel Goh has informed journalists about the vision and mission of the new global venture in a recent email.
He also talked about the advantages of perpetual futures contracts where buyers are not under obligation to execute deals based on a predetermined expiration date.
Instead, the consumers have the freedom to hold their positions for an indefinite duration. Goh also maintained that this new wing of Coinbase will work on getting high-bar regulatory approval.
He maintained that the exchange network plans to offer its products in a safe and compliant manner accompanied by critical risk management to back it.
Coinbase has claimed that it is planning to retain its main focus on the US crypto markets. However, the firm has noticed considerable traction in the international jurisdictions.
Therefore, the exchange platform has deemed it as the ideal time to expand the existing clientele. He maintained that he wishes to ensure that the company is hoping for a positive regulatory development in the US rather than a blanket ban.
Coinbase has maintained that all trades on its international trading forum are going to be settled in USD coin or USDC. On the other hand, the new exchange platform will also have various new security features such as 24/7 risk management and a strong emphasis on adherence to compliance.
He informed the media that commercial enterprises will be able to access the new services through an API. Coinbase CEO has recently started a new campaign calling for regulatory clarity on crypto markets and shared the Stand with Crypto NFT collection on the Zora trading network.
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