Coinbase Secures License to Operate in Bermuda, Plans to Launch Crypto Derivatives Exchange Next Week

The exchange is also in discussion with financial regulators in Abu Dhabi about a potential licence.

By Reuters | Updated: 21 April 2023 11:06 IST

Coinbase Secures License to Operate in Bermuda, Plans to Launch Crypto Derivatives Exchange Next Week

Photo Credit: Reuters

Coinbase CEO said crypto firms will develop in "offshore" havens unless the US and UK create clarity

Highlights

Crypto firms say they need clarity about regulations
Coinbase’s move is part of a wider push to expand globally
US regulators have stepped up actions against crypto firms

Major US crypto exchange Coinbase Global has said it has secured a licence to operate in Bermuda, as part of a wider push to expand globally.

Coinbase CEO Brian Armstrong said on Tuesday that crypto firms will develop in "offshore" havens unless the US and UK create "clarity about regulation" for crypto.

Regulators and law enforcement agencies in the US have stepped up actions against crypto firms this year, following a series of industry blowups in 2022. In March the US Securities and Exchange Commission (SEC) threatened to sue Coinbase over certain products.

EU Parliament Backs World's First Set of Rules to Regulate Crypto Assets

Coinbase has obtained a licence from the Bermuda Monetary Authority, which allows it to operate as a digital asset business there, it said in a blog post on Wednesday.

The exchange is also in discussion with financial regulators in Abu Dhabi about a potential licence, the blog said.

Coinbase is planning to launch a crypto derivatives exchange in Bermuda as soon as next week, Fortune reported on Wednesday, citing a person close to the company.

India, UK Discuss Crypto Assets; Focus on Robust Approach to Handling Risks

Asked about the Fortune report, a spokesperson for Coinbase told Reuters on Thursday the company had "nothing to announce today regarding our future plans to offer services through this license."

Bermuda's regulator did not immediately respond to a request for comment sent outside business hours.

Crypto derivatives trading is big business. In March, derivatives trading volumes on major exchanges hit some $2.8 trillion, according to London researcher CCData, versus spot trading volumes of just over $1 trillion.

US SEC Chair Gary Gensler told lawmakers on Tuesday that he had "never seen a field that's so non-complying with laws".

Crypto firms say they need clarity about regulations, but Gensler has said that crypto markets "suffer from a lack of regulatory compliance, not a lack of regulatory clarity".

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.