Coinbase International Exchange (NASDAQ:COIN) has been approved by the Bermuda Monetary Authority (BMA) to enable perpetual futures for eligible non-US retail customers in certain jurisdictions, according to a statement by the company. Coinbase said it will begin to offer perpetual futures trading in the next few weeks while expanding access to regulated derivatives to more global customers.
Coinbasse International Exchange was launched earlier this year as the company navigates the regulatory hurdles in the US. Coinbase CEO Brian Armstrong has stated that the US is “severely behind” in providing regulatory clarity for digital assets. He said the US is an “outlier” in the crypto sector.
The approval in Bermuda is part of Coinbase’s phase II of “Go Broad, Go Deep” strategy by pursuing approval in other jurisdictions around the world.
“We chose to build our business and become a public company in the US, believing that the US should be at the forefront of efforts to update our financial system. However, in expanding greater access to perpetual futures to eligible non-US customers, we are excited to further our mission to help update the global financial system and provide more economic freedom and opportunity for users around the world.”
Perpetual futures contracts on Coinbase International have already seen over $5.5 billion in notional trading volume from institutions as of Q2.
The company said that Coinbase International Exchange is well capitalized by its Insurance Fund and Liquidity Support Program funded in USDC, a dollar-based stablecoin.
This week, Armstrong was in Washington, DC, advocating for the digital asset industry as part of the “Stand with Crypto Day.” Armstrong said that approximately 40 firms were participating in the policy blitz. Speaking with CNBC, Armstrong noted that more people in the US have traded crypto than own electric cars or hold union cards.
At the same time, he criticized the regulation-by-enforcement approach taken by the Securities and Exchange Commission under the leadership of SEC Chair Gary Gensler. Armstrong noted that two bipartisan bills were approved by Committees in Congress this past year. At the same time, several recent court rulings have aligned with the crypto sector. Armstrong added that he was “confident” about the enforcement action filed by the SEC challenging Coinbase, which is ongoing.