The Launch of Spot Trading for Non-US Investors
Coinbase has announced the launch of spot trading for non-US investors on its international exchange. Starting from December 14th, non-US institutional clients will be able to trade Bitcoin and Ether against USDC stablecoin. Retail investors will have the opportunity to participate in spot trading at a later date. Coinbase’s primary goal is to build liquidity and create a robust foundation for the exchange. The company plans to add additional assets and features that will enable new trading strategies and enhance capital efficiency.
Regulatory Setbacks and Challenges
Coinbase’s announcement comes amidst regulatory discussions and enforcement actions surrounding the crypto industry, including a lawsuit from the SEC against the crypto exchange for offering unregistered securities. The lawsuit alleges that Coinbase never registered as a broker, clearing agency, or national clearing exchange and offered unregistered assets since 2019. Despite these challenges, Coinbase sees an opportunity to provide a trusted and compliant non-US spot market for participants who are hesitant to engage with US exchanges due to the evolving regulatory landscape.
Catalyst for Expansion
Coinbase launched its international exchange in May 2023, initially for crypto derivatives trading with support from Bermudan regulators. In a blog post earlier this year, the company expressed frustration with the regulatory environment in the United States. However, by locating their servers in more accessible locations globally, Coinbase aims to lower latency barriers and deliver a best-in-class trading experience for crypto users worldwide.
Hot Take: Expanding Opportunities for Non-US Investors
Coinbase’s announcement of spot crypto trading for non-US investors marks another step in the company’s global expansion. By offering a trusted and compliant non-US spot market, Coinbase aims to address hesitancy among asset issuers and members of the crypto community to engage with US exchanges. Despite regulatory setbacks and challenges, Coinbase sees the evolving and uncertain regulatory landscape in the United States as an opportunity for growth. With the launch of spot trading, Coinbase aims to build liquidity, create a robust foundation, and provide new opportunities for trading strategies and capital efficiency.
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