Coinbase Expands Futures Trading to Non-US Customers
Coinbase, the US-based cryptocurrency exchange, is set to offer crypto perpetual futures trading to its international customers registered in Bermuda. This move is part of Coinbase’s strategy to expand its business globally and partner with regulators to establish a crypto regulatory framework that encourages innovation. The futures contracts will be accessible to customers who meet Coinbase’s Advanced eligibility criteria. Trading is expected to begin in the coming weeks.
Coinbase’s Fight for Regulations
Coinbase’s decision to launch non-US futures trading comes amidst an ongoing legal battle with the US Securities and Exchange Commission (SEC) over allegations of operating as an unregistered broker-dealer. CEO Brian Armstrong has criticized the slow pace of crypto regulation in the US compared to other G20 countries.
Decline in Crypto ETFs
Meanwhile, the launch of Coinbase’s non-US futures business coincides with a period of indifference in the crypto futures market. Key indicators like open interest and basis have remained flat on the CME, the world’s largest derivatives trading exchange. Open interest refers to the number of futures contracts held by market participants at the end of a trading day.
In addition, there has been a decline in inflows for futures-based exchange-traded funds (ETFs) for five consecutive weeks. However, contributions from non-ETF-related futures products are near quarterly highs.
Hot Take: Coinbase Expands Global Reach with Futures Trading
Coinbase’s decision to offer crypto perpetual futures trading to non-US customers reflects its commitment to expanding its presence in international markets. By partnering with global regulators and establishing a crypto regulatory framework, Coinbase aims to drive innovation in the financial system. This move comes at a time when the crypto futures market is experiencing a period of stagnation, while futures-based ETFs face outflows. Despite these challenges, Coinbase’s expansion strategy positions the company for growth and diversification in the global crypto market.
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