• Coinbase has opened an offshore crypto derivatives exchange in Bermuda, called Coinbase International Exchange.
• The new facility will initially let traders bet on the price of bitcoin and ether via perpetual futures contracts with up to five times leverage and all trades will settle in the stablecoin USDC.
• This move is driven by regulatory headwinds in the U.S., prompting other crypto companies to look offshore as well.
Coinbase Opens Offshore Crypto Derivatives Exchange
Based in Bermuda, Coinbase International Exchange will not be open to U.S. traders. Trading has begun, allowing traders to bet on the price of Bitcoin and Ether via perpetual futures contracts with up to five times leverage and all trades settling in the stablecoin USDC.
Driven by Regulatory Headwinds
This move is driven by regulatory headwinds at home for Coinbase and other U.S.-based crypto trading firms who are now looking offshore for opportunities due to a “disappointing trend for crypto development” in the U.S.. Gemini also announced their own international crypto derivatives exchange on Tuesday, further signifying this shift away from US-regulated trading platforms.
Commitment to the US
Despite this shift away from regulation by enforcement, Coinbase remains committed to its operations within the United States, hoping that other countries would adopt “responsible crypto-forward regulatory frameworks” similar to what they have done outside of the country.