Crypto exchange Coinbase has achieved a significant milestone with their international exchange receiving regulatory approval from the Bermuda Monetary Authority (BMA) to offer perpetual futures to non-U.S. retail customers. This article explores the implications of this approval and the potential benefits it brings to Coinbase and its users.
Users of the Coinbase platform can now verify their eligibility to access perpetual futures, a financial product that allows traders to speculate on the future price of cryptocurrencies without needing to own them. Customers who meet the criteria will gain access to this product in the coming weeks, bringing them potentially lucrative investment opportunities.
Coinbase’s decision to establish a presence outside the United States aligns with the company’s vision of playing a pivotal role in modernizing the global financial system. By expanding access to perpetual futures to eligible non-U.S. customers, Coinbase aims to provide more economic freedom and opportunities for users worldwide.
Derivatives trading takes up a significant portion of the cryptocurrency trading market, accounting for approximately 75% of the total trading volume. By securing regulatory approval for perpetual futures, Coinbase positions itself as a key player in this domain. With over $5.5 billion in notional trading volume from institutions in the second quarter alone, Coinbase has already demonstrated its ability to attract institutional traders.
Coinbase’s international expansion journey takes a strategic turn with this licensing development. By obtaining licenses in multiple European countries such as the Netherlands, Spain, Ireland, and Italy, Coinbase is strengthening its position as a reputable player in the derivatives market. This move not only increases the company’s global reach but also allows it to tap into a substantially larger market base.
Obtaining regulatory approval from a respected institution like the Bermuda Monetary Authority is a stamp of trust and credibility for Coinbase. It reassures users that the platform meets strict regulatory standards and operates with transparency. This approval gives customers confidence in utilizing Coinbase’s perpetual futures offering.
Coinbase’s regulatory approval for perpetual futures opens up new investment opportunities for non-U.S. retail customers, expanding their access to the cryptocurrency market. As Coinbase continues its international expansion and secures licenses in multiple countries, it solidifies its position as a reputable player in the derivatives market. With the potential for increased trading volume and broader global reach, Coinbase is well-positioned to play a significant role in the modernization of the global financial system.
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