• 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.

Updates Privacy Policy

As part of this move, CoinDesk updated its privacy policy, terms of use, cookies, and “do not sell my personal information”. As a media outlet striving for high journalistic standards which abides by a strict editorial policy set forth by Digital Currency Group (which invests in cryptocurrencies), it is important that these policies remain transparent and secure for both users and investors alike.

Conclusion

Coinbase’s move towards an international expansion plan allows them take advantage of more lenient regulations overseas while still staying committed to their current operations within the United States as well as providing assurance that user data is secure through transparency measures outlined in their recently updated privacy policy