Coinbase launches the Coinbase International Exchange (CIE) for crypto derivatives trading amid increased regulatory pressure in the US.
As the cryptocurrency industry encounters increased regulatory scrutiny in the United States, Coinbase, the prominent public crypto exchange, advances with the establishment of a worldwide derivatives platform. On May 2, Coinbase introduced the Coinbase International Exchange (CIE), an advanced institutional platform specifically designed to facilitate crypto derivatives trading. This development takes place while the US Securities and Exchange Commission (SEC) intensifies its efforts to regulate the crypto industry.
Coinbase’s CIE will kick off trading operations by listing Bitcoin and Ether perpetual futures in the upcoming week. The CIE will settle all trades using the Coinbase-supported stablecoin USD Coin, thereby negating the need for fiat currency on-ramps. Coinbase points out that institutional clients can access direct trading on the CIE through APIs in qualified non-US jurisdictions. However, retail customers will not have access to these products at this time.
Bermuda Regulators Support Coinbase International Exchange Launch
The launch of the Coinbase International Exchange is backed by regulators in Bermuda, according to the announcement. Prior reports indicate that Coinbase secured a license from the Bermuda Monetary Authority (BMA) in mid-April 2023. This Class F License authorizes Coinbase to operate a digital asset exchange, a digital asset derivatives exchange provider, and to engage in activities such as token sales and issuance.
Coinbase emphasizes the reputable regulatory environment in Bermuda, which is characterized by high levels of transparency, compliance, and collaboration. Moreover, Bermuda, a self-governing British overseas territory with a parliamentary government, has a similar stance towards cryptocurrencies as the United Kingdom, where they are currently legal. The island has shown an increasingly favorable attitude towards the crypto industry
Bermuda Stock Exchange Operator Acquires FTX Crypto Exchange Remnants
In late April, Miami International Holdings, the company managing the Bermuda Stock Exchange, acquired the remaining assets of the collapsed FTX crypto exchange. The acquisition included FTX’s futures and options exchange, as well as the clearinghouse LedgerX, for a total of $50 million.
Bermudan Premier and Finance Minister Edward Burt has previously expressed the government’s continued support for crypto, despite setbacks such as the FTX collapse. In the previous year, local authorities declared that Bermuda would persevere with its ambitions to become a crypto hub, even as the industry confronted a significant bear market in 2022.
Reports from mid-March 2022 indicated that Coinbase had been planning to create a global crypto exchange. News of Coinbase’s forthcoming international platform emerged just days before the company officially announced that it had received a Wells notice from the United States Securities and Exchange Commission. In an effort to address this regulatory uncertainty, Coinbase submitted a motion against the SEC on April 25, seeking clarity on industry regulations.