Retail cryptocurrency traders outside of the United States now have access to Coinbase's perpetual futures trading platform, giving them access to the $5.5 trillion global derivatives market.
Retail Traders Outside the U.S. Can Now Trade Perpetual Futures on Coinbase
The Bermuda Monetary Authority (BMA) last week authorized Coinbase International Exchange, the firm's new non-U.S. exchange, to offer futures trading services to retail clients worldwide, with the exception of Americans. With the permission, Coinbase will soon be able to offer its derivatives services to more consumers around the world via its Coinbase Advanced platform.
The release from Coinbase stated, "As the most reputable and secure name in cryptocurrency, Coinbase will operate with full openness, deploy a strong risk framework, and satisfy the high-bar regulatory and compliance standards of the BMA.
The business views regulatory approval as a chance to advance its aim of modernizing the world's financial system by giving customers wider access to regulated derivatives on a global scale. According to the release, Coinbase will adhere to exacting risk management and compliance guidelines established by Bermudan authorities.
The action is being taken at a time when other exchanges are being subjected to greater regulatory scrutiny by authorities including the U.S. Securities and Exchange Commission. Since its inception earlier this year, Coinbase's futures contracts have already seen notional trading activity of more than $5.5 billion.
The San Francisco-based corporation stated that only eligible retail investors outside of the United States who pass the company's evaluation checks will have access to its futures trading services. According to Coinbase, its futures accounts will be supported by USDC reserves and managed by a skilled risk team.
What do you think about the introduction of perpetual futures by Coinbase following BMA approval? Post your ideas and viewpoints on this topic in the comments area below.