Coinbase licensed to list perpetual futures for retail users

Coinbase licensed to list perpetual futures for retail users

Coinbase Expands its Reach in the International Market with Regulatory Clearance

Coinbase, a leading cryptocurrency exchange, has announced that it has secured further regulatory clearance which allows the company to offer perpetual futures trading services to retail customers outside of the United States. This authorization demonstrates Coinbase’s commitment to expanding its footprint in the international market and extending its services to a wider range of customers.

In May 2023, Coinbase unveiled Coinbase International, a platform for offering crypto derivative services to institutional clients. With the latest regulatory approval, Coinbase can now provide its eligible customers access to regulated perpetual futures contracts on the Coinbase Advanced platform. Perpetual futures is a derivative market that operates continuously without expiration.

Coinbase’s “Go Broad, Go Deep” strategy emphasizes the company’s dedication to partnering with high-bar global regulators to establish a crypto regulatory framework that fosters continuous innovation in the industry. By complying with regulatory standards, Coinbase aims to build trust and provide a secure environment for its users.

The derivatives market currently accounts for nearly 75% of cryptocurrency trading volume. However, it has predominantly been the domain of institutional players. With this recent regulatory clearance, Coinbase aims to enable retail traders to enter the crypto derivatives market, providing them with opportunities previously reserved for institutions.

One important aspect highlighted by Coinbase is the fact that they do not engage in market-making activities. Instead, reputable independent liquidity providers, who have undergone rigorous compliance assessments, furnish the liquidity on the platform. This approach ensures transparency and mitigates potential conflicts of interest, further enhancing the trustworthiness of Coinbase’s services.

Coinbase asserts that its platform serves as a secure and proficient entry point for retail traders into the derivatives market. Access to Coinbase International Exchange is currently limited to non-U.S. customers in specific countries, and prospective users need to undergo an eligibility assessment before they can open a Coinbase Advanced trading account.

This recent approval for Coinbase International to offer perpetual futures to retail clients comes shortly after the platform’s approval by the National Futures Association (NFA) to offer crypto futures investments to eligible institutional clients in the United States. Despite facing regulatory challenges from the Securities and Exchange Commission (SEC) over its services, Coinbase continues to expand its presence beyond U.S. borders, demonstrating its determination to serve a global audience.

In addition to this international expansion, Coinbase has also obtained an operational license in Spain, further solidifying its position as a key player in the global cryptocurrency market.

Overall, Coinbase’s regulatory clearances and expansions signify the growing acceptance of cryptocurrencies and the blockchain industry worldwide. As more governments and regulatory bodies establish clear guidelines for cryptocurrency exchanges, companies like Coinbase can continue to drive innovation and fuel the growth of the industry. The developments also present unique opportunities for retail traders to participate in previously inaccessible markets and diversify their investment portfolios.

To illustrate Coinbase’s expanding reach, the following table summarizes the significant milestones achieved:

Date Milestone
May 2023 Launch of Coinbase International, offering crypto derivative services to institutional clients
Year Additional regulatory clearance allowing retail customers to access perpetual futures contracts
Year Approval by the NFA to offer crypto futures investments to eligible institutional clients in the U.S.
Year Operational license secured in Spain

With each of these milestones, Coinbase continues to strengthen its position as a trusted and reliable cryptocurrency exchange, providing users with secure and regulated avenues to participate in the blockchain revolution. The company’s commitment to working closely with regulators reflects its understanding of the importance of regulatory compliance in gaining trust and building a sustainable ecosystem for cryptocurrency investors.

While Coinbase is navigating regulatory challenges in various jurisdictions, the company’s determination to expand and innovate contributes to the broader adoption and acceptance of cryptocurrencies worldwide. As blockchain technology continues to evolve, Coinbase’s efforts will play a crucial role in shaping the future of finance and revolutionizing traditional industries.