Apr 26, 2023 12:25
American crypto exchange Coinbase has expanded in international presence by obtaining a new regulatory license from Bermuda Monetary Authority (BMA), an official blog post revealed on Wednesday.
New Upcoming Coinbase Derivatives Exchange?
The Class F License under the Digital Asset Business Act will allow Coinbase to offer crypto exchange services from the offshore island and other services like token sales and issuance. According to Fortune, Coinbase is set to launch a Bermuda-based crypto derivatives exchange as early as next week.
“Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation,” Coinbase wrote in the blog post.
“Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator that is led by a world-class executive team and board of directors.”
Hostile US Regulations
Coinbase added a Bermuda license when its top executives criticized the lack of cryptocurrency regulations in the United States. At a recent London event, the CEO Brian Armstrong hinted that Coinbase could leave the US.
“I think if a number of years go by where we don’t see regulatory clarity emerge in the US, we may have to consider investing more in other regions of the world,” he said.
https://t.co/0HxlRiI6Sy was an offshore exchange not regulated by the SEC.The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore.Punishing US companies for this makes no sense.
— Brian Armstrong (@brian_armstrong)
November 10, 2022Rather than bringing regulations, the current focus of the US agencies is busting the illegalities in existing crypto exchanges. The Securities and Exchange Commission (SEC) is already engaged in a long legal battle with Ripple and has charged Tron, Bittrex, and others. Binance and its CEO are also facing various charges from the Commodity Futures Trading Commission (CFTC). In addition, Coinbase is expecting enforcement action against it for its crypto lending products.
Headquartered and listed in the US, Coinbase now has a significant presence outside the country. It already holds regulatory licenses in Canada, Singapore, Australia, the United Kingdom, Ireland, and the Netherlands. It is now seeking a license in the United Arab Emirates.
“Our approach globally will be consistent with our approach in the United States: we will work with governments and regulators in different markets, and will always aim to be the most trusted and compliant crypto company in any market,” the Coinbase blog post added.
This article was written by Arnab Shome at www.financemagnates.com.
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