Coinbase has announced the launch of its international exchange, which enables institutional traders outside the United States to trade Bitcoin (BTC) and Ethereum (ETH) perpetual futures. The trades for the new platform are settled in USD Coin (USDC) and do not require fiat on-ramps. The exchange also offers perpetual futures contracts with up to five times leverage. The new exchange is the result of Coinbase’s recent regulatory approval from the Bermuda Monetary Authority (BMA). The exchange holds a Class F digital assets business license under the Digital Assets Business Act 2018 (as amended) and is licensed by the BMA. The exchange can be accessed by non-US institutions in selected jurisdictions, and the FAQ stated that the exchange plans to expand to serve non-US professional investors and advanced retail users in eligible countries later this year.
Coinbase has been facing increased regulatory scrutiny lately, receiving a Well Notice from the U.S. Securities and Exchange Commission (SEC) over some of its products in March. The exchange also filed a legal action against the Commission, arguing that it does not list securities. The CEO of Coinbase, Brian Armstrong, has hinted that the firm might leave the US if the regulatory landscape does not improve. During this period, the exchange’s shares have shed more than 20%, dropping from as high as $72 in April to $50.1 as of May 1, according to Tradingview data. CNBC reported that leading financial institution Citi downgraded shares of the exchange to neutral, citing the current regulatory headwind the exchange is facing. Meanwhile, CEO Armstrong offloaded over $2 million of the exchange’s stock.
Overall, Coinbase’s new international exchange marks a significant move for the exchange, offering a new platform for institutional traders to access Bitcoin and Ethereum perpetual futures. Despite recent regulatory challenges, the exchange continues to expand its services and offerings, with plans to serve non-US professional investors and advanced retail users in eligible countries later this year.