Coinbase, one of the world's largest public crypto exchanges, planned to launch its Coinbase International Exchange (CIE) on May 2. The platform is designed to allow institutional clients to trade crypto derivatives, with all trading being settled in Coinbase-backed stablecoin USD Coin (USDC). While direct access trading is only available to eligible, non-U.S. jurisdictions, the launch of this new international crypto platform comes amidst the cryptocurrency industry facing more regulatory challenges in the United States.

Coinbase has long been at the forefront of crypto regulations in the US, and its motion against the SEC in late April was seen as a bold move in an attempt to gain clarity on the industry regulations. The global derivatives platform follows Coinbase’s efforts to acquire a license from the Bermuda Monetary Authority (BMA) by mid-April 2023. The Class F License granted Coinbase the ability to operate a digital asset exchange and a digital asset derivatives exchange provider as well as conduct activities such as token sales and issuance.

Bermuda, a self-governing British overseas territory with a parliamentary government, has become increasingly crypto-friendly in recent years. In late April, Miami International Holdings purchased the remnants of the collapsed FTX crypto exchange for $50 million, specifically acquiring its futures and options exchange and clearinghouse LedgerX. This came shortly after Bermudan Premier and Finance Minister Edward Burt declared that the government has remained open to crypto, despite the industry experiencing a bear market in 2022. Bermudan regulations face more transparency, compliance, and cooperation than other countries, such as the United Kingdom, which poses an obvious advantage over the US due to their more lenient regulations in the crypto industry.

In summary, the launch of Coinbase's International Exchange platform is the exchange's latest attempt to become an international standard for cryptocurrency regulations. The success of CIE in navigating legal hurdles in Bermuda and other non-U.S. jurisdictions indicates that Coinbase is committed to expanding its presence in a market that is increasingly faced with increased regulatory pressure in the US.



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