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Coinbase received its license to operate in Bermuda on April 19th. The action was taken to keep up with the company’s campaign for “global scale to go broad and deep”.
Coinbase plans to launch a coastal derivatives exchange in the next week, after it acquired a license to function in Bermuda from the Bermuda Monetary Authority. Coinbase applauded Bermuda as an excessively reputed and professional financial regulator in its announcement.
Coinbase had long been looking to inaugurate an offshore medium to trade perpetual swaps tied to crypto tokens, according to The Block. The proliferation of the idea can manifest as soon as the next week. In a blog post recently, Coinbase emphasized that Bermuda was one of the first financial hubs to legally allow comprehensive virtual assets regulation in 2018, and its regulatory ecosystem is much known for its high level of rigor, clarity, accountability, and cooperation. The country is highly respected and is also a member of various international organizations, retaining its strong relationships with other regulatory agencies across the globe.
Perpetual swaps, a particular kind of future and famous product in the crypto industry, are touted to be a major offering on the exchange. They offer a more capital-efficient method for traders to call bets on the crypto market.
Coinbase, which is America’s largest crypto exchange, received its license to operate in Bermuda on April 19th. The action was taken to keep up with the company’s campaign for “global scale to go broad and deep”.
Moreover, the license approval follows after US regulatory body has decided to take more stringent measures toward the crypto industry in the United States. Recently, Coinbase also received a Wells Notice, which is a warning of impending legal measures from the Securities and Exchange Commission (SEC).
In a talk by the Chief Executive Officer of Coinbase at the Fintech Week in London, Brian Armstrong expressed his disappointment in the present scenario. On the topic of a possible migration to more favorable environments, he said that for now, everything is being considered, which includes relocating if that is required.
In addition to this, Armstrong also complimented the United Kingdom for functioning efficiently on a more practical crypto regulation. However, Britain’s banks have different opinions and have persistently inflicted hurdles on the operations of crypto firms.
Recently in March, Armstrong vehemently talked against the measures taken by the regulatory authorities. He forewarned the people of a massive migration of innovation and talent to other countries where SEC doesn’t hamper their abilities to create a virtual financial market.
Coinbase’s recent move has shown how companies are eyeing places like Hong Kong, Dubai, and Singapore, which are calling themselves crypto centers and are most likely to become the firm place of business when it comes to the crypto industry.