Coinbase approved to list perpetual futures trading for non-US users

Coinbase approved to list perpetual futures trading for non-US users

Coinbase International Exchange Expands Its Offerings to Non-US Customers

Coinbase International Exchange, a leading cryptocurrency exchange, has recently received regulatory approval from Bermuda’s financial regulator, the Bermuda Monetary Authority (BMA). This approval allows eligible non-US retail customers to access and trade perpetual futures contracts on Coinbase Advanced. This news marks an important milestone in Coinbase’s global expansion efforts and highlights its commitment to collaboratively build a crypto regulatory framework that fosters innovation.

Understanding Perpetual Futures Contracts

Perpetual futures contracts are a type of derivative market that differs from traditional futures contracts in one key aspect – they do not have an expiry date. Unlike traditional futures contracts, which have a predetermined maturity date, perpetual futures contracts continue to roll indefinitely. This unique characteristic provides traders with greater flexibility and allows them to hold positions for longer durations.

Coinbase’s Strategic Approach

Coinbase’s acquisition of regulatory approval in Bermuda aligns with the company’s Phase II strategy, known as “Go Broad, Go Deep.” The strategy focuses on partnering with high-standard global regulators to establish a robust and supportive regulatory framework for cryptocurrencies. By working hand-in-hand with regulators, Coinbase aims to create an environment that fosters cryptocurrency innovation while ensuring compliance and investor protection.

The Importance of Regulatory Approval

Obtaining regulatory approval is crucial for cryptocurrency exchanges like Coinbase. It demonstrates the company’s commitment to operating within legal boundaries and provides reassurance to customers regarding the exchange’s credibility and trustworthiness. Furthermore, regulatory approval enables exchanges to expand their services and offerings, attracting a broader customer base.

Bermuda’s Regulatory Environment

Bermuda has been proactively embracing blockchain and cryptocurrency technologies. This forward-thinking approach has made the island nation an attractive destination for cryptocurrency businesses seeking regulatory clarity. The Bermuda Monetary Authority, the country’s financial regulator, has been instrumental in fostering a supportive environment for innovation, granting Coinbase the necessary approval to offer perpetual futures contracts to non-US retail customers.

Impact and Benefits for Customers

Coinbase’s move to offer perpetual futures contracts to non-US customers presents numerous benefits for eligible traders. Firstly, it provides them with access to advanced financial instruments that were previously only available to US customers. This democratization of access allows a wider range of retail customers to participate in the growing cryptocurrency market. Additionally, perpetual futures contracts offer traders the ability to hedge their positions, manage risk, and potentially profit from market fluctuations more effectively.

Conclusion

Coinbase International Exchange’s regulatory approval from Bermuda’s financial regulator showcases the company’s commitment to expanding its global presence and its dedication to working alongside regulators to create a crypto regulatory framework that fosters innovation. By offering perpetual futures contracts to eligible non-US customers, Coinbase is enabling a broader audience to participate in advanced trading strategies and benefit from the flexibility and opportunities provided by these unique financial instruments. As the blockchain industry continues to evolve, collaborations between forward-thinking businesses and regulatory bodies will undoubtedly play a crucial role in driving its future growth and development.

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