Coinbase Expands Perpetual Futures Trading for Global Retail Users

Coinbase extends perpetual futures trading to non-U.S. retail users, navigating regulatory challenges while eyeing global expansion.

Coinbase, a leading cryptocurrency exchange, has announced its expansion into the perpetual futures trading market for retail customers based outside of the United States. This strategic move follows Coinbase’s successful ventures in institutional futures trading, where they managed transactions worth billions of dollars.

The green light for this expansion came from the Bermuda Monetary Authority (BMA). With this approval, Coinbase is set to extend its services to retail customers who are not based in the U.S. Furthermore, Coinbase’s International Exchange arm has already reported impressive results, boasting over $5.5 billion in notional futures trading volume from institutional clients as of Q2 this year.

Coinbase’s Global Strategy

Coinbase’s foray into the international arena began earlier this year when they obtained BMA’s authorization to provide perpetual futures trading to non-U.S. institutional clients. This move is particularly significant given that nearly three-quarters of the global crypto trading volume originates from the derivatives market, as reported by Coinbase.

As part of their Phase II “Go Broad, Go Deep” initiative, Coinbase has expressed its commitment to collaborating with top-tier global regulatory bodies. Their goal? To craft a robust crypto regulatory framework that promotes continuous technological innovation in the realm of cryptocurrency.

Highlighting their broad vision, Coinbase’s international focus encompasses 24 countries. This list includes G20 members and financial hubs like Hong Kong, Switzerland, Singapore, and the United Arab Emirates. Moreover, with sights set on the upcoming G20 summit in Brazil, Coinbase aims to champion the establishment of more definitive international guidelines.

However, it’s not all smooth sailing for Coinbase, especially on its home turf. The exchange has faced challenges with the U.S. Securities and Exchange Commission, leading to public statements about the unpredictable regulatory landscape in the U.S.

Despite these challenges, Coinbase remains committed to its U.S. base. Their dedication is evident in their recent achievement, securing permission from the National Futures Association. This approval enables Coinbase to function as a futures commission merchant, offering U.S. clients the chance to delve into crypto futures on their platforms.