Crypto trading firm Coinbase is opening a derivatives exchange in Bermuda as part of an international expansion plan that comes as the publicly traded firm faces regulatory headwinds at home.
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 5x leverage; all trades will settle in the stablecoin USDC. In a blog post Coinbase said trading has begun.
The move represents Coinbase’s latest foray into derivative trading, one of the most popular corners of the küresel crypto market despite being effectively iced out of the U.S., where such activities require hefty oversight.
“Rest assured that Coinbase is committed to the U.S., but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs,” Coinbase said in a blog post. “We would like to see the US take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the U.S.”
Recommended for you:
- What Will It Take for Bitcoin Mining Companies to Survive in 2023?
- IRS Seeks to Tax NFTs Like Other Collectibles
- What’s Next for Genesis Creditors? It Depends on What’s in the Bankruptcy Filing
Those pressures are prompting other U.S. based crypto companies to look offshore, too. Also Tuesday, Gemini announced the launch of its own international crypto derivatives exchange.