Coinbase has launched a derivatives exchange for institutional investors outside the United States as part of its strategy to lessen its dependence on the domestic market amid increasing regulatory scrutiny.
Leveraging its recently obtained Class F license from the Bermuda Monetary Authority, Coinbase has established the new exchange in Bermuda. The Coinbase International Exchange will allow institutional users from eligible jurisdictions outside the US to trade perpetual futures, which made up nearly 75% of the global crypto trading volume in 2022.
This initiative comes as Coinbase engages in a confrontational relationship with US regulators. Last month, CEO Brian Armstrong mentioned that “anything is on the table” regarding a potential relocation of the company’s headquarters away from the US. Additionally, the firm has filed a lawsuit against the Securities and Exchange Commission, seeking a judicial response to a petition filed last year concerning the regulatory framework for digital assets.
In a blog post announcing the exchange’s launch, Coinbase expressed its commitment to the US while highlighting that many countries are advancing responsible regulatory frameworks to establish themselves as crypto hubs. The company advocates for a similar approach in the US, rather than the current trend of regulation by enforcement, which has hampered crypto development in the country.