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Coinbase International Exchange, a class F license holder from the Bermuda Monetary Authority (BMA), has announced that it has obtained further regulatory approval, enabling the platform to provide perpetual futures trading to non-US retail clients.
Since its launch in May 2023, Coinbase International has already been offering crypto derivatives services to institutional customers. With this new regulatory endorsement, the crypto platform will soon grant eligible users access to regulated perpetual futures contracts on the Coinbase Advanced platform. The exchange indicated that the Perpetual Futures accounts are managed by Coinbase Bermuda Limited, which is regulated by the BMA.
The crypto exchange stated in its announcement that approximately 75% of crypto trading volume originates from the derivatives market, and the recent regulatory approval would facilitate retail traders’ entry into the crypto derivatives market, which is predominantly controlled by institutions.
The crypto platform also highlighted that Coinbase does not participate in market making, asserting that the liquidity on the exchanges is supplied by reputable, independent liquidity providers who have undergone comprehensive compliance assessments.
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Coinbase asserted that its platform would serve as an appropriate gateway for retail traders to access the derivatives market in a secure and compliant way. Only non-US consumers from select countries can utilize Coinbase International Exchange, and customers are assessed to determine their eligibility for this product before they can establish a Coinbase Advanced trading account.
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The recent authorization for Coinbase International to provide perpetual futures to retail clients follows just a month after the platform received approval from the National Futures Association (NFA) to offer investments in crypto futures to qualified institutional clients in the United States.
Coinbase has continued to progress outside the U.S. despite encountering a regulatory challenge with the U.S. Securities and Exchange Commission regarding its services. The regulator initiated a lawsuit against Coinbase in early June, claiming that the exchange breached local securities laws by selling unregistered securities.
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