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Coinbase Secures Bermuda License to Run Derivatives Exchange

Coinbase’s recent update revealed that the US-based crypto exchange secure license sought to run a derivative platform in Bermuda. 

The statement conveyed on April 19 acknowledged the approval as signaling acceptance of the Coinbase brand at a time when the firm is pursuing a global expansion campaign. 

Bermuda License Perceived a Gateway for Coinbase Expansion 

The approval will enable Coinbase to unveil its coastal derivatives exchange by the end of April. 


The statement by Coinbase acknowledges the critical input that the Bermuda Monetary Authority (BMA) has in facilitating clarity in the oversight of crypto operators. Coinbase commends the BMA as reputable for exercising professionalism in financial regulation

The announcement marks a critical milestone for Coinbase’s pursuit to unveil a reliable offshore medium to facilitate trading perpetual swaps linked to the crypto tokens. The expansion of Coinbase to the coastal region will likely materialize next week. 

Coinbase executives are portraying Bermuda as among the pioneer financial hubs that, in 2018, legally facilitated virtual assets’ regulation. The blog post illustrates Bermuda as deploying a regulatory ecosystem founded upon accountability, clarity, and cooperation principles.

Bermuda Considered Reputable for Strong Networks with Global Regulatory Agencies

The post casts Bermuda as a country attracting reputable international organizations, given the existence of strong relationships with global regulatory agencies. Entry into the country is timely, given that perpetual swaps trading is set to become an essential product across the crypto industry. 

Expediting the unveiling of perpetual swaps trading would position Coinbase at the heart of a critical product in the virtual assets sector. In particular, Coinbase considers perpetual swaps as providing capital efficiency for digital asset traders seeking to bet on the market movement.

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The approval of the Bermuda license on April 19 is set to rejuvenate the US-leading crypto exchange to expedite its global scale campaign. The crypto exchange target spirited expansion abroad through deep-oriented products to leverage the popularity of critical addition in the crypto industry.  

Coinbase Joins Other Crypto Firms Expanding Outside US

The approval of the Bermuda operations coincides with a period where the US regulatory bodies led by the Securities and Exchange Commission led by Gary Gensler are integrating stringent measures to the crypto operations targeting US citizens. The move dubbed regulation via enforcement has befallen Kraken, Coinbase, Binance, and recently Bittrex crypto exchanges. 

Coinbase recently admitted to receiving the Wells Notice notifying it of impending legal actions by the SEC. In his address during the London Fintech Week, chief executive Brian Armstrong expressed disappointment in the SEC move.

The enforcement actions push crypto innovation away from the US, forcing Coinbase, Kraken, and Binance to pursue Europe and Hong Kong. Coinbase executives admitted that the crypto exchange is considering relocating to favorable jurisdictions. Armstrong was noncommittal on the preferred course of action. Nevertheless, he failed to rule out relocating to a foreign destination.  

Coinbase Chief Lauds Hong Kong, Dubai and UK Regulatory Journey

Armstrong lauded the devotion by the Hong Kong and European Union as two jurisdictions gearing toward realistic crypto regulation. In particular, Armstrong appreciated the concerted efforts demonstrated by the United Kingdom to deliver a practical crypto regulation. 

The Coinbase chief added that the country’s regulatory agencies are geared towards the efficient functioning of the crypto sector. Such efforts contrast the stance adopted by British banks in persistently imposing hurdles incapacitating crypto firms’ operations. 

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The statement by Coinbase echoes the pronouncement made by its chief executive Armstrong in March, decrying the measures enforced by the regulatory authorities. He warns that the US may suffer a massive exodus of innovation as talents seek a crypto-friendly environment. 

Crypto firms are seeking destinations where the US SEC would not hamper efforts to establish a virtual financial market. As such, Coinbase’s blog post confessed that rival firms are targeting Dubai, Singapore, and Hong Kong, given the devotion of their governance structure and political will to make them crypto centers. Coinbase is set to utilize Bermuda as a pilot platform for the firm to seek geographical presence in crypto centers.  

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Stephen Causby

Stephen Causby is an experienced crypto journalist who writes for Tokenhell. He is passionate for coverage in crypto news, blockchain, DeFi, and NFT.

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