financemagnates.com
Coinbase has launched a global cryptocurrency derivatives exchange days after disclosing that it was going offshore with a Bermuda license. The US-based digital asset exchange said the new platform is only open to only eligible, non-US institutional traders.
The new platform on Tuesday listed Bitcoin (BTC) and Ether (ETH) perpetual futures contracts, Coinbase said in a blog post, adding that the platform currently only offers 5x leverage, with all trades settled in stablecoin USD Coin (USD).
It’s official! Coinbase International Exchange is here. Institutional traders in eligible non-US jurisdictions now have access to trade perpetual futures settled in USDC with up to 5x leverage.
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 2, 2023
Read more about our announcement ⬇️https://t.co/vrIfK999ompic.twitter.com/E5ssl8NBz3
“As more and more markets are moving forward with regulatory frameworks to become crypto hubs, we believe the moment is right to launch this international exchange,” Coinbase said.
Earlier on Monday, Gemini’s non-US derivatives trading platform, Gemini Foundation, also went live days after its launch, opening with BTC perpetual contracts denominated in stablecoin Genimi dollar (GUSD). The Winklevoss twins-owned platform is open to traders from all jurisdictions except those in the United States, United Kingdom and the European Union, the American firm said in a statement.
1/ We’re thrilled to announce that Gemini Foundation’s derivatives platform is now live with our BTC/GUSD perpetual contract trading across 30 countries. https://t.co/NyQLKhsZYt
— Gemini (@Gemini) May 2, 2023
Both moves come as US regulators crack down on digital asset firms in the country, categorizing their cryptocurrency assets as securities. For instance, derivatives markets watchdog, the Commodity Futures Trading Commission, sued Binance for operating an illegal crypto derivatives exchange, among other allegations.