Coinbase approved for perpetual futures trading for non-US retail users

Coinbase approved for perpetual futures trading for non-US retail users

Coinbase Expands Perpetual Futures Trading Services to Retail Customers Outside the US

Source: Adobe / Rafael Henrique Source: Adobe / Rafael Henrique

Coinbase, the largest cryptocurrency exchange in the US, has recently obtained regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures trading services to non-US retail customers. With this approval, Coinbase aims to expand its services and tap into the growing demand for perpetual futures trading among retail investors.

The Significance of Derivatives Trading in the Crypto Market

Derivatives trading plays a crucial role in the global cryptocurrency market, accounting for approximately 75% of the total trading volume. Coinbase acknowledges this and seeks to cater to the increasing demand for perpetual futures trading. Perpetual futures contracts allow traders to speculate on the price movements of cryptocurrencies without the need for an expiration date. This flexibility has made perpetual futures a popular choice among both institutional and retail investors.

Coinbase’s Commitment to Regulatory Compliance and Innovation

Coinbase emphasizes its dedication to working with forward-looking regulators to establish a comprehensive regulatory framework that fosters crypto innovation while ensuring consumer protection. The exchange realizes that a well-defined regulatory framework is essential for the long-term growth and adoption of cryptocurrencies.

To further its mission, Coinbase focuses on 24 countries, including G20 members, Hong Kong, Switzerland, the United Arab Emirates, and Singapore. The exchange has expressed its intention to participate in the G20 forum in Brazil next year to advocate for clearer and more standardized international regulations governing the cryptocurrency industry.

Global Expansion Efforts Amidst Regulatory Challenges in the US

Coinbase’s push for global expansion comes at a time when it is facing regulatory challenges in the US. In June, the Securities and Exchange Commission (SEC) sued Coinbase for alleged violations, including selling unregistered securities and running unregistered financial services. Additionally, Coinbase received Show Cause orders from 11 US states, requiring the exchange to justify why it should not cease operations in those states.

However, despite these challenges, Coinbase continues to pursue its global expansion strategy. The exchange has secured Anti-Money Laundering (AML) compliance registration from the Bank of Spain, making it a registered crypto exchange in the country. This registration allows Coinbase to offer its full suite of products and services to both retail and institutional users in Spain while ensuring compliance with the country’s legal framework.

Furthermore, Coinbase has obtained Virtual Asset Service Provider (VASP) registrations in several European countries, including Italy, Ireland, and the Netherlands. It has also received in-principle approval and launched its services in Singapore, Brazil, and Canada.

Conclusion

Coinbase’s regulatory approval to offer perpetual futures trading services to non-US retail customers signifies the exchange’s commitment to expanding its offerings and catering to the growing demand for derivatives trading in the crypto market. By working with regulators and advocating for clearer international regulations, Coinbase aims to nurture crypto innovation while ensuring consumer protection. Despite regulatory challenges in the US, Coinbase continues to forge ahead with its global expansion plans, establishing its presence in various countries worldwide.

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