US-based crypto exchange Coinbase on Wednesday announced in a blog post that it had gained official licensing in Bermuda island as it continues its push to establish the business offshore. Reports also indicate that the crypto firm is making swift moves to institute a derivatives exchange on the island as early as next week.
The company said that it received a type F license from the Bermuda Monetary Authority, a national integrated regulatory body for the British-overseas territory in the North Atlantic Ocean. The island already has a regulatory framework, as it was one of the first states to draft proper supervision for digital assets in the world.
Moving Offshores
Coinbase intends to start offering derivatives services immediately, as it has been constricted from doing so due to regulatory structures in the US. Derivatives services and perpetual swaps make up a huge part of daily cryptocurrency trading but are mostly unavailable in America.
A few days ago, Coinbase CEO Brian Armstrong met with the UK Economic Secretary and reiterated plans to keep investing in Britain. Coinbase has long contacted offshore institutions and discussed the prospect of starting a crypto exchange there, a move that is beginning to materialize.
The largest crypto exchange in the US might not wholly leave the US soon, as it has established itself as a giant and has constantly stated its compliance record in its origin country. However, if regulators continue to crack down on crypto exchanges with the current intensity, Coinbase might consider the prospect of completely pulling out.
Coinbase Outline Expansion Plans
In its announcement, Coinbase also listed what it has been up to in its plans to broaden the exchange’s “global scale.” The firm cited that its Brazilian subsidiary has integrated Pix into its services to enable swift payment in the country.
The exchange also noted that it is accelerating plans in Abu Dhabi and Canada and “doubling down” in Europe. Countries like Hong Kong and Singapore, which have established their crypto acceptance, will be the next target for Coinbase as it looks to compete with Binance on a global scale.
