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Why does coinbase participate in a 150-fold leverage exchange investment round and invest offshore?

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Coinbase joins 150x leveraged exchange Blade investment round BLADE has raised $4.3 million to approximately 450 million yen, with investments from SV Angel, A.Capital and Slow Ventures in the funding round.

The site has already been opened and a campaign has been announced that transactions up to $100,000 to about 10.5 million yen will be free of transaction fees.

The exchange mimics the commodities of perpetual futures handled by BitMex and others, and leverage is even higher than 100 times that of Bitmex.
Why do Us operators invest in offshore exchanges? There is little doubt that the reason for the investment by businesses in the United States, including coinbase, is that they cannot operate leveraged exchanges in their home countries from a regulatory perspective.

There are leverage restrictions in the United States, and neither Coinbase nor Gemini are offered leverage trading. Even though regulations are now being cleared little by little, there is some suggestion that seed investments in offshore exchanges are being made. It does not shift to the situation in which only fully regulated exchanges are used for at least five years, and offshore exchanges remain to gain some citizenship. And perhaps the investors in this case, including the coin base, are thinking.

You can’t make this investment unless you at least think about it. Similar cases include Digital Currency Group and Polychain Capital

There have been cases in 2019 in which Capital has invested in an offshore futures exchange called CoinFLEX.

Poloniex, the subsidiary of Circle, has established a global subsidiary in Bermuda. Offshore services, the name of these global services, are expected to continue for some time to come, and this is a repeat of the history of the FX and CFD industries.

More information is provided in this report. If offshore exchanges become more regulated in five to seven years, and customers are no longer attracted, companies like this company can absorb their technology and futures management know-how.

Technology and operational know-how can only be acquired by the players who operate it. However, futures and leveraged exchanges can only be operated offshore at this time. That’s why we’re now investing offshore, including coin bases, and preparing to bring them into our country when regulations are cleared in the future.

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