Coinbase announced it received the green light from the Bermuda Monetary Authority (BMA) to go ahead with allowing non-US institutions to trade perpetual futures on its platform. Coinbase Advanced, the cryptocurrency trading platform’s retail functionality, will offer access to regulated perpetual futures in the coming weeks.
This news follows the May announcement regarding the company’s launch of the Coinbase International Exchange. This is a non-US exchange with a class F licence from the BMA.
Experts believe this regulatory approval will open doors for crypto asset trading. This would be a positive move for the industry at a time when financial regulations are increasingly scrutinising cryptocurrency exchanges.
In its Thursday blog post, Coinbase stated that the global crypto derivatives market represents approximately 75% of the worldwide crypto trading volume. This is indicative of the demand to trade these assets.
Financially unsound practices make this a risky trade option. However, Coinbase feels it complies with the transparency and security requirements and gives retail traders a safe place to do so. The company’s announcement maintained:
Coinbase International Exchange follows the robust regulatory framework established by the BMA, maintaining high standards of risk management, compliance and user protections.
It also said that the Coinbase International Exchange futures contracts centre around strict compliance standards and have already experienced a notional trading volume of $5.5bn as of Q2. These figures alone are enough to make this BMA approval a significant milestone in cryptocurrency circles.
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