Coinbase, the largest cryptocurrency exchange in the USA, is taking an important step today. Accordingly, it received approval from Bermuda’s financial regulator. Thus, it will offer continuous futures trading to individual investors outside the US. This movement has an important meaning. It allows small-scale investors to participate in speculative trading of financial products that predict future asset prices. Thus, it points to a very important change. Coinbase’s official blog post states that trading will begin in the coming weeks. He also emphasizes that it will expand the accessibility of these financial instruments.
Coinbase expands beyond US borders
Coinbase’s decision to expand perpetual futures trading to international retail investors is a significant one. It represents a strategic expansion beyond its home market. The exchange has long been committed to leading the modernization of the financial system in the United States. However, increased regulatory scrutiny at home has led Coinbase to explore opportunities abroad. This latest move is in line with the company’s global expansion strategy.
Following the collapse of rival exchange FTX and the subsequent arrest of its CEO Sam Bankman-Fried, the Securities and Exchange Commission (SEC) intensified its regulatory oversight. This has led to increased scrutiny of prominent crypto companies and their founders, such as Genesis, Gemini, Justin Sun (the crypto celebrity behind TRON), and Do Kwon (creator of the TerraUSD stablecoin).
Stock market has continued growth amid regulatory challenges
In March, Coinbase announced that it had received a Wells Notice indicating impending SEC litigation. Despite this, Coinbase continued to seek regulatory approval in Bermuda. Thus, it allowed the exchange to operate an offshore platform. Then in May, the company introduced Coinbase International Exchange, which appeals to institutional investors.
Despite the SEC’s lawsuit against Coinbase in June, the exchange has continued to thrive. It has also facilitated billions of dollars of cryptocurrency transactions through both its local and offshore assets. Notably, the Bermuda branch reported a trading volume of $5.5 billion in the second quarter of 2023 from institutional investors alone. To put this in perspective, Coinbase’s total transaction volume during the same period reached $92 billion.
Growth attracts attention
Coinbase’s continued expansion of futures trading to international retail investors demonstrates the company’s commitment to embracing new opportunities while navigating a rapidly evolving regulatory environment.
Of course, Coinbase will not be able to shed its oversight by expanding outside the US. However, considering that the stock market is the largest in the USA, the step taken is a sign of expansion. Let’s see where the stock market will continue its expansion in the future.
