Coinbase International Exchange, which holds a class F license from the Bermuda Monetary Authority (BMA), has announced that it has received additional regulatory approval. This approval allows the platform to offer perpetual futures trading to non-US retail customers. The platform initially launched in May 2023 and already provided crypto derivatives services to institutional clients. With this latest approval, eligible customers will soon have access to regulated perpetual futures contracts on the Coinbase Advanced platform.
The exchange clarified that the Perpetual Futures accounts are managed by Coinbase Bermuda Limited, which is regulated by the BMA. According to Coinbase, approximately 75% of crypto trading volume comes from the derivatives market. The recent regulatory approval aims to provide retail traders with access to this market, which is primarily dominated by institutions.
Coinbase emphasized that it does not engage in market making. Instead, the liquidity on the exchanges is provided by established, independent liquidity providers who have undergone thorough compliance reviews. The platform aims to serve as a secure and compliant gateway for retail traders to access the derivatives market. However, only non-US consumers in select countries can utilize the Coinbase International Exchange. Eligibility for this product is assessed through a testing process before customers can open a Coinbase Advanced trading account.
It is noteworthy that this recent approval for Coinbase International to offer perpetual futures to retail customers comes just a month after the platform obtained approval from the National Futures Association (NFA) to offer crypto futures investments to eligible institutional clients in the United States.
Despite facing regulatory challenges with the U.S. Securities and Exchange Commission (SEC) over its services, Coinbase has been making progress outside of the U.S. The SEC filed a lawsuit against Coinbase in early June, alleging the sale of unregistered securities in violation of local securities laws.