3 - 5 minute read
Coinbase, the United States-based cryptocurrency exchange, has recently been granted a regulatory license to operate from the Bermuda Monetary Authority. As a result, Coinbase is reportedly starting operations to launch a derivatives exchange in Bermuda by the next week.
Relevant Information, Facts, and Names From the Transcript
Coinbase has received a Class F license under the Digital Asset Business Act from the Bermuda regulator. This license enables Coinbase to perform token sales and issuance, operate as both a digital asset exchange and digital asset derivatives exchange provider. Furthermore, the license sets Coinbase apart as a trustworthy and compliant cryptocurrency company in any market. Additionally, Coinbase’s wider strategy to “go broad and go deep” seeks to establish regulated entities and local operations across Brazil, Canada, Singapore, Europe, and the United Arab Emirates. Forbes claimed that Coinbase’s plans to launch offshore derivatives exchange in Bermuda as soon as next week.
Coinbase just got a license in Bermuda to launch a futures trading service.— Lark Davis (@TheCryptoLark) April 19, 2023
Not long before the main Coinbase exchange leaves the USA too IMO unless something changes at the SEC.
Quotes From the Original Article
“As we have said previously, our approach globally will be consistent with our approach in the United States: we will work with governments and regulators in different markets, and will always aim to be the most trusted and compliant crypto company in any market.”
Analysis and Interpretation
Coinbase’s expansion into Bermuda is a significant move as it enables the company to grow its reach beyond the United States, where it is already established. The Class F license it has received from the Bermuda Monetary Authority permits Coinbase to conduct a wide range of activities, including token sales and issuance, digital asset exchange, and digital asset derivatives exchange provision. Such a broad range of services that Coinbase offers elevate the company’s image and increase its perceived value. Alongside this, Forbes’ report of Coinbase’s plans to launch an offshore derivatives exchange in Bermuda highlight the company’s dynamic business model, which establishes its presence across several countries.
The expansion of Coinbase in Bermuda presents prospective opportunities for traders. Coinbase’s reputation and reliability make it an attractive entity for traders. The prospect of a derivatives exchange in Bermuda offers a new platform on which traders can perform financial transactions, which can lead to increased liquidity and volatility in the market.
The Bottom Line
Coinbase’s regulatory license to operate in Bermuda enables the cryptocurrency exchange to expand into new financial markets. This will provide increased opportunities for traders, enhance the reputation of cryptocurrencies in Bermuda and offer a broader platform on which traders can perform transactions. As a result, traders should consider this new development to position themselves to profit from the increased liquidity and volatility in the cryptocurrency market.