Coinbase Global Strategy
US-listed company Coinbase, which provides a crypto asset (virtual currency) exchange, announced on the 19th that it has obtained a license from the Bermuda Monetary Authority.
In addition, according to a person close to Coinbase, the company is reportedly planning to launch a derivatives exchange in Bermuda as early as next week, which is attracting attention.
In a statement on its official blog, Coinbase explained that it is looking to grow internationally and establish regulated entities and regional operations in highly regulated environments overseas. Through a “Go Broad & Go Deep” strategy, he said, the company aims to expand its foundational product offerings around the world while enriching its infrastructure and product offerings with regional focus. .
We are actively working in markets such as Singapore, Brazil, Canada, Abu Dhabi and Bermuda, working with local regulators to develop additional solutions and products focused on customer protection and security. It says.
Coinbase also went public in the hopes that its U.S. service would be the most popular, but noted that regulatory enforcement has led to negative trends in the U.S. crypto sector.
As a result, it focuses on countries that aim to become “crypto asset hubs” around the world, one of which is said to have obtained a license from the Bermuda Monetary Authority. It highlights that Bermuda was the first in the world to roll out a comprehensive legal framework for digital assets in 2018.
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Preparing a derivatives market under overseas jurisdiction?
The company plans to launch an “offshore derivatives exchange” in Bermuda as early as next week, foreign media outlet Fortune reported Wednesday, citing people close to Coinbase. By launching an offshore exchange in Bermuda, San Francisco-based Coinbase aims to compete with industry leader Binance and strengthen its revenue base.
“Offshore Derivatives Exchange” means an exchange that handles derivative products located in a foreign jurisdiction. There is also a view that they are often established in places where regulations are lax.
Bloomberg reported in March that Coinbase was working with institutional investors, market makers and others for a new offshore trading platform. The Block also reported that Coinbase’s offshore exchange will handle “perpetual swaps.”
What is permanent swap
A perpetual swap is a type of futures contract, also known as a perpetual futures contract. Unlike conventional futures trading, it is an investment contract that does not set a deadline.
In response to Fortune’s inquiry, a Coinbase spokesperson referred to the official blog.
Coinbase CEO Brian Armstrong said yesterday that the US and UK need to be more explicit about their regulation of the cryptocurrency industry. Behind this remark is the intention to prevent companies from expanding in countries and regions called “offshore havens” that are used for tax avoidance and deregulation. “If there is no change in U.S. regulations, we are considering moving our headquarters out of the U.S.,” he said.
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