Coinbase International Exchange launched amid SEC Crypto Crackdown in the US

Coinbase International Exchange launched amid SEC Crypto Crackdown in the US

The Coinbase International Exchange is launching trading in Bitcoin and Ether futures.


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Coinbase, a public crypto exchange, is launching a global derivatives trading platform as the cryptocurrency industry struggles with regulatory issues within the United States.

Coinbase launched the Coinbase International Exchange on May 2. This new platform is designed to facilitate crypto derivatives trading.

CIE is set to begin trading Bitcoin ( BTC), and Ether ( ETH), perpetual futures, later this week. The CIE will settle all trading in USD Coin ( USDC) backed by Coinbase, requiring no on-ramps to fiat.

Coinbase emphasized that institutional clients in non-U.S. jurisdictions who qualify can access direct access trading via an application programming interface. Coinbase said that retail customers are not able to access these products at the moment.

According to the announcement the new crypto platform was launched with the support of Bermuda regulators. Coinbase received a license by the Bermuda Monetary Authority before mid-April 2023, as previously reported. The Class F license allowed Coinbase the ability to operate both a digital assets exchange and digital asset derivatives exchange providers as well as conduct activities such as token sales and issuance.

Coinbase stated that Bermuda is known for its “high level” of transparency, cooperation and compliance.

Bermuda is an independent British overseas territory that has a parliamentary system of government. Bermuda, like the United Kingdom (where cryptocurrencies are legal), has been supportive of crypto and is growing more bullish about the industry.

Miami International Holdings , operator of Bermuda Stock Exchange , purchased the remnants of FTX , a crypto exchange that had collapsed, in late April. The company purchased FTX’s futures and option exchange, as well as clearinghouse LedgerX, for $50 million.

Edward Burt, Bermuda’s Premier and Finance minister, had previously stated that the Government remains open to Crypto despite failures in industry like FTX. Local authorities stated last year that Bermuda would maintain its crypto hub ambitions even though the industry is facing a massive decline in 2022.

Related: ARK Invest purchases $8M worth of Coinbase shares on International Workers’ Day

Citigroup, a major U.S. Investment Bank, has downgraded Coinbase’s shares from high-risk to neutral with a price target of $65 from $80. Citigroup analyst Peter Christiansen believes that regulatory uncertainty in the cryptocurrency industry is a threat to Coinbase.

Citi’s comments came as Coinbase shares had been falling for several weeks. Coinbase’s shares have fallen more than 20% over the last month. They went from a peak of $72 in early April to $50 Monday, May 1.

As reported previously, Coinbase intended to launch a global cryptocurrency exchange by mid-March 2022. Coinbase announced its upcoming international crypto exchange just days before receiving a Wells Notice by the United States Securities and Exchange Commission. Coinbase responded by filing a motion on April 25 against the SEC, asking for clarification of industry regulations.

Magazine: Crypto regulation – Does SEC chair Gary Gensler have final say?