Coinbase launches international exchange with Bitcoin and Ethereum Perpetual Futures

The largest cryptocurrency exchange in the United States today announced the launch of Coinbase International Exchange, expanding access to digital assets for institutional clients. The new venture follows regulatory approval from the Bermuda Monetary Authority (BMA), and the new exchange will initially offer Bitcoin and Ethereum perpetual futures.

“Coinbase International Exchange is another step on our plans to scale globally – going wide and deep, lighting up the map – first announced in May 2022,” said Emmanuel Goh, Head of Coinbase International Exchange. Decrypt in an email.

Unlike traditional futures, where buyers and sellers are obligated to execute the contract on a specific date regardless of market conditions, perpetual futures do not have an expiration period, meaning traders can hold their positions indefinitely.

“Our international expansion efforts will focus on high-bar regulatory jurisdictions,” a Coinbase spokesperson said Decrypt in March. “We remain focused on offering our products in a secure manner, with good risk management at its core.”

Coinbase said it is committed to the US, but observed that countries around the world are increasingly moving forward with responsible, crypto-forward regulatory frameworks as they try to position themselves as crypto hubs.

“We would like to see the US take a similar approach rather than regulation by enforcement, which has led to a disappointing trend for crypto development in the US,” Coinbase said. “Coinbase International Exchange is an extension that brings the safest, most trusted name in crypto to the global market.”

Coinbase said that trades on the Coinbase International Exchange will be settled in USD Coin (USDC) and that the new exchange will have more security features, including real-time 24/7 risk management, dynamic margin requirements and strict compliance standards.

Institutional customers in eligible non-US jurisdictions can also access the platform directly through an API, Coinbase said, although retail customers will not initially have access.

“As more and more markets move forward with regulatory frameworks to become crypto hubs, we believe the moment is right to launch this international exchange,” Coinbase said.

Coinbase has been in a war of words with the US Securities and Exchange Commission and its chairman Gary Gensler since the agency accused ex-Coinbase chief product officer Ishan Wahi and his brother Nikhil of insider trading in July 2022 — suggesting in a lawsuit that nine digital assets on the exchange were unregistered securities.

In April, Coinbase asked a federal court to compel the SEC to respond to its request for clearer regulations. Last week, Coinbase CEO Brian Armstrong took to Twitter to rally support from the crypto community for a campaign calling for clearer industry regulations — sharing that he was creating a “Stand with Crypto” NFT from the Zora marketplace.