Coinbase revealed that it has obtained a license to operate in Bermuda.
The American exchange is reportedly planning to open a derivatives exchange in Bermuda next week.
Coinbase previously contacted its institutional investors about an offshore trading platform.
The global expansion comes in light of the crackdown on crypto by regulators in the United States.
Coinbase is reportedly planning to launch an offshore derivatives trading platform after receiving a license to operate in the island nation of Bermuda. The American exchange previously hinted at setting up an exchange overseas and focusing on global expansion in light of the hostile treatment of crypto firms at the hand of regulators in the United States.
U.S. Regulators Force Coinbase To Look At Offshore Options
In a recent blog post, Coinbase revealed that it had obtained a Class F license from the Bermuda Monetary Authority (BME) under the Digital Asset Business Act. The American crypto exchange added that it had chosen Bermuda as one of its international hubs given the high level of experience that its financial regulator carried.
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.”
According to a report by Fortune, Coinbase is planning to launch an offshore derivatives exchange in Bermuda as soon as next week. The plans were revealed by a person close to the exchange. CEO Brian Armstrong has been vocal about his company’s efforts toward global expansion. News of the offshore exchange in Bermuda comes just a day after the CEO hinted at relocating the firm abroad. At a fintech conference in London, Armstrong stated, “Anything is on the table. Including, you know, relocating or whatever is necessary.” Coinbase had previously contacted its institutional investors about plans to potentially set up a new crypto-trading platform overseas.
Brian Armstrong and other industry leaders have repeatedly warned about the consequences of the crackdown on the U.S crypto industry by the country’s regulator. The anti-crypto campaign is led by the Securities and Exchange Commission with Gary Gensler at its helm. Since the beginning of 2023, the securities regulator has initiated enforcement actions against several crypto firms and issued Wells notices to multiple crypto entities including Coinbase.