Blockchain & Crypto

Coinbase Debuts Offshore Exchange

Coinbase announced the launch of an international cryptocurrency exchange.

Coinbase Debuts Offshore Exchange

Source: Pixabay.com

Currently, this company is in a situation of increased attention from regulators and increasing tension in interaction with them. In part, this circumstance is the reason for the decision to launch an international-level cryptocurrency exchange.

The new Coinbase exchange, the launch of which was announced last Tuesday, May 2, in the company’s blog, will provide institutional users based in jurisdictions outside the United States to trade perpetual futures, which, according to the firm, accounted for about 70% of the global volume of crypto trading last year.

Representatives of Coinbase say that the creation of a global exchange of perpetual futures on digital assets will contribute to the renewal of the financial system. Also, according to them, this exchange will make the company’s products and services more accessible to users of digital assets who live outside the United States.

Representatives of the firm also noted that there is currently a growing number of markets where a regulatory framework is being developed so that these spaces can become crypto centers in the future. They note that in the context of these trends, the launch of an international exchange is particularly relevant.

The launch of the exchange, which became possible as a result of the recent licensing of Coinbase by the Bermuda Monetary Authority, took place six weeks after the first reports appeared that the company was exploring the prospects of creating a crypto market outside of American jurisdiction.

Not the easiest relationship between Coinbase and the Securities and Exchange Commission (SEC) began after the firm received a notification from the regulator in March that the exchange had placed potentially unregistered securities on its platform. Such notifications are not in all cases the first stage of proceedings in the criminal legal dimension, but practice shows that there are more than enough examples when these notices were a signal of an imminent lawsuit.

Coinbase CEO Brian Armstrong last week announced the company’s readiness to cooperate with the authorities, but noted that the firm will go to court if there is a reason for this. He also said that Coinbase will interact with several regulators so that the crypto industry becomes secure and trustworthy.

Separately, Brian Armstrong stressed that the notification received by the firm in the absence of a clearly formulated legal framework is an unconstructive and negative precedent for the United States. The head of the firm declared his readiness to defend this position in the framework of the trial but noted that events could develop according to a more positive scenario. He also spoke about the desire for a full-fledged dialogue about possible options for the development of the industry.

In March, Brian Armstrong said that crypto firms would start operating in offshore zones if clear regulatory rules were not introduced in the US and the UK. He said this at an industry conference, answering a question from former British Chancellor George Osborne about the possibility that Coinbase will leave the United States.

Brian Armstrong noted that the American market has the potential to become a key one for cryptocurrencies, but so far there is no clarity about the regulation that Coinbase needs. He also stated that in the absence of any changes in the solution to this issue, his company may consider the prospects of increasing investment in other countries.

At the same time, Coinbase continues to declare its commitment to the United States against the background of disappointment due to the practice of law enforcement regulation, which generates disappointing trends in the field of cryptography.

As we have reported earlier, Coinbase Partners With Brazilian Payment Apps to Expand Services.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.