Coinbase Secures Regulatory Approval for Derivatives Trading in International Markets – Coinpedia Fintech News
Coinbase secured a significant foothold in the booming derivatives market after winning regulatory approval to offer futures trading to international retail investors. In addition, the green light from Bermuda authorities represents a benchmark victory for the exchange vying to lead the trillion-dollar sector.
On Thursday, the Bermuda Monetary Authority granted Coinbase a license to enable highly leveraged perpetual futures contracts on its International Exchange. The company heralded the authorization as a watershed moment, advancing its global expansion.
The exchange stated in the announcement that “as announced in Phase II of our “Go Broad, Go Deep” strategy, we are dedicated to partnering with high-bar global regulators to build a crypto regulatory framework that allows crypto technology to drive innovation continually.
Institutions trade over $5.5 billion in futures on Coinbase
Institutions trade over $5.5 billion in futures on Coinbase’s platform. The exchange now looks to capture vast unmet demand from individual investors worldwide.
The permission comes as scrutiny of unregulated crypto derivatives trading escalates globally. Additionally, massive blowups at firms like FTX exposed hidden risks underlying the complex products. As authorities crack down, opportunities open for above-board platforms following strict rules.
Coinbase positioned itself to seize the competitive edge by adhering to Bermuda’s rigorous oversight framework. Also, the company noted that “only a few trusted players exist” to meet the high bar for security, compliance, and transparency. Their meticulous approach paid dividends with this hard-won regulatory seal of approval. In their announcement, Coinbase also swiped at competitors facing backlash and bans over unregulated trading.
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