Coinbase Receives Regulatory Nod for Retail Perpetual Futures Trading

• Coinbase gains regulatory approval from the BMA for non-US retail perpetual futures trading.
• The platform stands out for its rigorous compliance standards and over $5.5 billion in notional trading volume from institutions.
• Non-US retail traders can soon access perpetual futures trading on Coinbase Advanced.

Coinbase International Exchange has secured regulatory approval from the Bermuda Monetary Authority (BMA) to introduce perpetual futures trading for eligible non-US retail clients. The platform shared this significant milestone for Coinbase through an official post on X.

The official announcement pointed out that in line with Coinbase’s “Go Broad, Go Deep” strategy, the company is actively collaborating with regulators to establish a regulatory framework for cryptocurrencies. Regulations within the cryptocurrency sphere have become a prominent subject of discussion, notably underscored by the Bank for International Settlements (BIS) report urging nations across the globe to establish legal frameworks for central bank digital currencies(CBDCs).

While initially centered in the US, Coinbase is now extending its reach to enable regulated perpetual futures trading for non-US customers. This expansion aligns with Coinbase’s mission to modernize the global financial system and foster economic opportunities worldwide.

Coinbase’s regulatory green light comes at a time when several crypto exchanges are grappling with heightened regulatory scrutiny, leading to withdrawals from various markets. The global crypto derivatives market accounts for a substantial portion of cryptocurrency trading volume, underscoring the demand for such instruments. However, the number of reliable and transparent players in this arena is limited.

The announcement also highlighted that Coinbase stands out by adhering to rigorous compliance standards, boasting over $5.5 billion in notional trading volume from institutions as of Q2. Now, upholding the BMA’s regulatory framework, Coinbase prioritizes risk management, compliance, and user protection.

Coinbase, with a global expansion in mind, made a significant move earlier this year as it unveiled its international exchange in May. As part of this expansion, the exchange introduced perpetual futures contracts for both BTC and ETH.

Coinbase holds customer assets 1:1, providing confidence in asset safety. It is well-funded through its Insurance Fund and Liquidity Support Program, backed by USDC, a stable and highly liquid stablecoin.

Non-US retail traders can check their eligibility for perpetual futures trading on Coinbase Advanced. Perpetual Futures accounts will be managed by Coinbase Bermuda Limited (dba Coinbase International Exchange), a regulated entity under the Bermuda Monetary Authority (BMA). In related news, Brian Armstrong, the CEO of Coinbase, expressed his disapproval of Chase UK, the British arm of financial services behemoth JPMorgan Chase, and its recent decision to ban crypto transactions.