Coinbase has launched a global
cryptocurrency derivatives exchange days after disclosing that it was going
offshore with a Bermuda license. The US-based digital asset exchange said the new
platform is only open to only eligible, non-US institutional traders.
The new platform on
Tuesday listed Bitcoin (BTC) and Ether (ETH) perpetual futures contracts,
Coinbase said in a blog post, adding that the platform currently only offers 5x
leverage, with all trades settled in stablecoin USD Coin (USD).
It’s official! Coinbase International Exchange is here. Institutional traders in eligible non-US jurisdictions now have access to trade perpetual futures settled in USDC with up to 5x leverage.
Read more about our announcement ⬇️https://t.co/vrIfK999ompic.twitter.com/E5ssl8NBz3
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 2, 2023
“As more and more markets are
moving forward with regulatory frameworks to become crypto hubs, we believe the
moment is right to launch this international exchange,” Coinbase said.
Earlier on Monday, Gemini’s non-US
derivatives trading platform, Gemini Foundation, also went live days after its launch, opening with BTC perpetual contracts denominated
in stablecoin Genimi dollar (GUSD). The Winklevoss twins-owned platform is
open to traders from all jurisdictions except those in the United States,
United Kingdom and the European Union, the American firm said in a statement.
1/ We’re thrilled to announce that Gemini Foundation’s derivatives platform is now live with our BTC/GUSD perpetual contract trading across 30 countries. https://t.co/NyQLKhsZYt
— Gemini (@Gemini) May 2, 2023
US Regulators Go after Crypto
Firms
Both moves come as US regulators
crack down on digital asset firms in the country, categorizing their
cryptocurrency assets as securities. Late last month, Coinbase filed a lawsuit against the Securities and Exchange Commission (SEC),
demanding that the US securities watchdog provide guidance for the
cryptocurrency industry using its formal rulemaking process.
The lawsuit came a month after
Coinbase got a Wells notice from the SEC, stating that it has been violating the US
securities law by offering unregistered securities. The securities watchdog in
April also charged Bittrex and its Founder for allegedly operating as a national
securities exchange, broker and clearing agency without registration.
In late March, derivatives
markets watchdog, the Commodity Futures Trading Commission, also sued Binance and its CEO for allegedly operating an illegal crypto
derivatives exchange in the country, among other allegations.
In recent months, the SEC also
filed charges against crypto executives such as TRON Founder Justin Sun and
Terraform Labs CEO Do Kwon, as well as platforms such as Kraken, Gemini
and Genesis, criticizing them for offering cryptocurrencies as unregistered
securities.
SEC Maintains Stance on Crypto
as Securities
Yet, the SEC does not appear
ready to back down on its stance that digital assets fall under the US
securities law. Gary Gensler, the Chairman of SEC, recently released a video
reiterating this point. However, some executives have accused the regulators of failing to cooperate with them.
Intermediaries for investment contracts are required to comply with securities laws & register with @SECGov.
Instead, many crypto platforms are contending that their investment contracts are something else.
The law cares about what something actually is, not what you call it.
— Gary Gensler (@GaryGensler) April 27, 2023
“Rest assured that Coinbase is
committed to the US, but countries around the world are increasingly moving
forward with responsible crypto-forward regulatory frameworks to strategically
position themselves as crypto hubs,” Coinbase said. “We would like to see
the US take a similar approach instead of regulation by enforcement which has
led to a disappointing trend for crypto development in the US.”
Revolut in Brazil; WeChat’s digital yuan expansion; read today’s news nuggets.
Coinbase has launched a global
cryptocurrency derivatives exchange days after disclosing that it was going
offshore with a Bermuda license. The US-based digital asset exchange said the new
platform is only open to only eligible, non-US institutional traders.
The new platform on
Tuesday listed Bitcoin (BTC) and Ether (ETH) perpetual futures contracts,
Coinbase said in a blog post, adding that the platform currently only offers 5x
leverage, with all trades settled in stablecoin USD Coin (USD).
It’s official! Coinbase International Exchange is here. Institutional traders in eligible non-US jurisdictions now have access to trade perpetual futures settled in USDC with up to 5x leverage.
Read more about our announcement ⬇️https://t.co/vrIfK999ompic.twitter.com/E5ssl8NBz3
— Coinbase International Exchange 🛡️ (@CoinbaseIntExch) May 2, 2023
“As more and more markets are
moving forward with regulatory frameworks to become crypto hubs, we believe the
moment is right to launch this international exchange,” Coinbase said.
Earlier on Monday, Gemini’s non-US
derivatives trading platform, Gemini Foundation, also went live days after its launch, opening with BTC perpetual contracts denominated
in stablecoin Genimi dollar (GUSD). The Winklevoss twins-owned platform is
open to traders from all jurisdictions except those in the United States,
United Kingdom and the European Union, the American firm said in a statement.
1/ We’re thrilled to announce that Gemini Foundation’s derivatives platform is now live with our BTC/GUSD perpetual contract trading across 30 countries. https://t.co/NyQLKhsZYt
— Gemini (@Gemini) May 2, 2023
US Regulators Go after Crypto
Firms
Both moves come as US regulators
crack down on digital asset firms in the country, categorizing their
cryptocurrency assets as securities. Late last month, Coinbase filed a lawsuit against the Securities and Exchange Commission (SEC),
demanding that the US securities watchdog provide guidance for the
cryptocurrency industry using its formal rulemaking process.
The lawsuit came a month after
Coinbase got a Wells notice from the SEC, stating that it has been violating the US
securities law by offering unregistered securities. The securities watchdog in
April also charged Bittrex and its Founder for allegedly operating as a national
securities exchange, broker and clearing agency without registration.
In late March, derivatives
markets watchdog, the Commodity Futures Trading Commission, also sued Binance and its CEO for allegedly operating an illegal crypto
derivatives exchange in the country, among other allegations.
In recent months, the SEC also
filed charges against crypto executives such as TRON Founder Justin Sun and
Terraform Labs CEO Do Kwon, as well as platforms such as Kraken, Gemini
and Genesis, criticizing them for offering cryptocurrencies as unregistered
securities.
SEC Maintains Stance on Crypto
as Securities
Yet, the SEC does not appear
ready to back down on its stance that digital assets fall under the US
securities law. Gary Gensler, the Chairman of SEC, recently released a video
reiterating this point. However, some executives have accused the regulators of failing to cooperate with them.
Intermediaries for investment contracts are required to comply with securities laws & register with @SECGov.
Instead, many crypto platforms are contending that their investment contracts are something else.
The law cares about what something actually is, not what you call it.
— Gary Gensler (@GaryGensler) April 27, 2023
“Rest assured that Coinbase is
committed to the US, but countries around the world are increasingly moving
forward with responsible crypto-forward regulatory frameworks to strategically
position themselves as crypto hubs,” Coinbase said. “We would like to see
the US take a similar approach instead of regulation by enforcement which has
led to a disappointing trend for crypto development in the US.”
Revolut in Brazil; WeChat’s digital yuan expansion; read today’s news nuggets.
