Coinbase is Now Active in Bermuda
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Popular digital currency exchange Coinbase is launching its Bermuda-based trading platform. After just a few weeks of teasing that it had gotten the proper licensing documents due to regulatory scrutiny in the U.S., the firm appears to be opening its international enterprise without delay.
Coinbase Has Opened Its Int’l Exchange
Known as the Coinbase International Exchange, the firm will allow customers not in America to trade in perpetual futures or products tied to the predicted future prices of commodities. Right now, these products are going to be purely bitcoin and Ethereum-based, though a spokesperson for the company has stated that this could potentially change in the future.
In a blog post, Coinbase said the following:
Rest assured that Coinbase is committed to the U.S., but countries around the world are increasingly moving forward with responsible, crypto-forward regulatory frameworks to strategically position themselves as crypto hubs. We would like to see the U.S. take a similar approach.
The company has been under the watchful eye of the Securities and Exchange Commission (SEC) over the past several weeks. Not long ago, the federal financial agency sent the exchange a Wells notice, meaning that while Coinbase had not been formally charged with a crime yet, such a charge was likely coming soon, and executives should prepare themselves for a legal fight.
Coinbase took serious issue with this notice given that it had allegedly met with various members of the SEC about 30 times or more over the past nine years to ensure the company was always in compliance. Coinbase has stated it does not know what it could possibly be charged with at the time of writing.
Also, the company is suing the SEC as a means of garnering a quick response to a survey it submitted to the agency last July. If the court rules in Coinbase’s favor, the SEC could finally decide if the crypto arena can and should be governed by present-day securities laws. The move is in reference to the lack of clear crypto regulation, which Coinbase believes the entire industry is suffering from.
The SEC has been a major bully to crypto and crypto companies as of late. Not long ago, the firm engaged in a lawsuit with leading America-based digital currency exchange Kraken. The company was forced to part with $30 million in fees and end all its staking services and activities.
Other Companies Moving Abroad
Coinbase has said its new international trading platform (at first) will be utilized only by institutional investors and market makers. All trades will be settled in USDC, a leading popular stable currency that Coinbase helped develop with crypto firm Circle.
It appears Coinbase is not alone in its international ambitions. Gemini is learning from the company and is launching its own separate exchange in Singapore.
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