Coinbase's offshore exchange in Bermuda officially launches, with an average daily trading volume of $100 million.
The U.S. compliant exchange Coinbase, facing regulatory uncertainties and lawsuits from the SEC, is actively expanding overseas. Its offshore derivatives exchange launched in Bermuda this month has officially gone live, with an average daily trading volume of around $100 million. More new features and additional products are expected to be introduced in the second half of the year.
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Coinbase Launches Offshore Exchange in Bermuda
In late April, Coinbase obtained a license from the Bermuda Monetary Authority (BMA) and chose Bermuda as one of its international centers to launch an offshore derivatives exchange, allowing its international users to trade Bitcoin and Ethereum perpetual contracts through this platform. According to The Block's data, from June 21 to 28, the exchange's trading volume approached $900 million, with an average daily trading volume of around $100 million, which is a promising start for an exchange that only offers two types of contracts.
Emmanuel Goh, product manager at Coinbase, stated that Coinbase is working on launching more new features and additional products in the second half of the year.
Meanwhile, Binance remains the leader in the derivatives trading sector, with an on-platform trading volume of $4.49 trillion this month.
Entangled in SEC Lawsuit, Actively Expanding Overseas
In late March, the U.S. cryptocurrency exchange Coinbase received a Wells notice from the U.S. Securities and Exchange Commission (SEC), warning that the exchange may have violated U.S. securities laws. Subsequently, Coinbase filed a lawsuit against the SEC under the Administrative Procedure Act, demanding that the SEC provide an answer on whether it is willing to establish cryptocurrency regulations. In June, the SEC took further action by suing both Binance and Coinbase, specifically mentioning that Coinbase listed multiple unregistered securities.
Coinbase CEO Brian Armstrong, in addition to emphasizing Coinbase's rigorous listing process, continues to urge for clear regulation in the U.S. cryptocurrency industry.
However, waiting idly is not the approach a company should take. In addition to launching an offshore platform, Coinbase is actively expanding its services in other countries, such as:
Partnering with Bitpanda, a cryptocurrency exchange and trading platform based in Austria, to provide cryptocurrency services to customers
Collaborating with Standard Chartered Bank to allow Singapore users to deposit and withdraw funds on Coinbase for free through any local bank
Integrating with Brazil's central bank payment system Pix to provide fiat currency deposit and withdrawal services
Continuing operations in Canada and actively seeking registration
Engaging in negotiations with the Financial Services Regulatory Authority (FSRA) in Abu Dhabi to establish a regulated exchange