Coinbase, a company that trades in cryptocurrencies, is creating a derivatives exchange in Bermuda as part of a worldwide development strategy. This move comes when Coinbase is facing regulatory difficulties at home in the United States.
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The new facility will first allow traders to wager on the price of bitcoin and ether through perpetual futures contracts with up to 5x leverage. All transactions will settle in the stablecoin USDC. The new facility will be called Coinbase International Exchange. Coinbase announced the launch of trading in a post on its blog.
The move marks Coinbase’s latest step into derivative trading, one of the most popular sectors of the global cryptocurrency market, despite being virtually frozen out of the United States, requiring such operations to have substantial monitoring.
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The move was made in response to customer demand. In a blog post, Coinbase said,
Rest assured that Coinbase is committed to the United States. However, countries worldwide are increasingly moving forward with responsible crypto-forward regulatory frameworks to position themselves as crypto hubs strategically.” “Instead of regulation by enforcement, which has led to a disappointing trend for crypto development in the United States, we would like to see the United States take a similar approach,
the authors write.