Coinbase, the largest regulated crypto exchange in the US, was recently approved to receive a license to operate in Bermuda. Now, the exchange is preparing to launch a new derivatives exchange based in the region, and the new subsidiary might even start operating as soon as next week.<\/p>\n
Coinbase revealed that it received a regulatory license to operate in Bermuda in a blog post <\/a>published yesterday, April 19th. The company said that the license came from the nation’s financial regulator, the Bermuda Monetary Authority and that it is a Class F license under the Digital Asset Business Act.<\/p>\n As such, it allows the exchange to operate in the country and engage in a wide range of activities, including token issuance and token sales. Other than that, the platform can also operate as both, a digital asset exchange and a digital asset derivatives exchange provider.<\/p>\n Initial reports that Coinbase intends to launch a derivatives exchange in Bermuda came from an unidentified source close to the company. This individual said as much for the report <\/a>published on April 19th, claiming that Coinbase intends to launch the new exchange next week, if possible.<\/p>\n Coinbase itself cited clear regulations as the reason why Bermuda is becoming one of its financial hubs, noting that the local regulatory environment “is long known for a high level of rigor, transparency, compliance, and cooperation.” He added that “Our approach globally will be consistent with our approach in the United States: we will work with governments and regulators in different markets and will always aim to be the most trusted and compliant crypto company in any market.”<\/p>\n Interestingly, many in the crypto community seemingly believe that this might mark the beginning of the end for Coinbase in the US. The announcement that the exchange received a license to operate in Bermuda came only a single day after its CEO, Brian Armstrong, said that Coinbase is considering leaving the United States due to the lack of regulatory clarity.<\/p>\n The US regulators have done little to regulate the space and are behind many other countries that Coinbase has since expanded to. Instead of developing laws that would allow cryptocurrencies to operate in the country properly, they are arguing about whose jurisdiction the industry falls under and cracking down on any crypto project or company they can get their hands on.<\/p>\n I'd say the US is losing more than Coinbase if that happens.<\/p>\n — Bill Ramburg (@softbilldream) April 20, 2023<\/a><\/p><\/blockquote>\nCoinbase might be looking to leave the US soon<\/h2>\n
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