Coinbase, a leading player in the US cryptocurrency space, is expanding its horizons by launching an international crypto exchange.
This move is part of the company’s Go Deep, Go Broad global expansion strategy and a response to the increasing regulatory challenges in the United States.
Coinbase’s international expansion
The decision to go international comes after the exchange and its CEO, Brian Armstrong, expressed concerns about the lack of regulatory clarity in the US.
Many countries are attempting to establish themselves as crypto hubs, and Coinbase sees an opportunity to enter these markets and expand its services.
The newly launched Coinbase International Exchange will allow institutional users based in the US to trade perpetual futures.
According to the company, “Building out a global perpetual futures exchange for digital assets will help support an updating of the financial system by making Coinbase’s trusted products and services more accessible to users of digital assets who live outside of the US.”
Coinbase International Exchange will adhere to a high standard of customer protection and maintain a robust risk management framework. The exchange has listed BTC and ETH perpetual futures contracts, with all trades settled in USDC. Initially, the contracts will offer 5x leverage.
Crypto industry’s strained relationship with US regulators
The cryptocurrency industry, including Coinbase, has experienced growing tensions with US regulators. In recent months, other exchanges have also faced challenges in the US:
- Seattle-based exchange Bittrex announced its exit from the US, only to face a lawsuit from the SEC shortly after.
- Kraken closed its staking services for US customers in February as part of a settlement with regulators.
Coinbase CEO Brian Armstrong mentioned at a recent fintech conference in London that if regulatory clarity does not improve, the company may consider relocating.
Coinbase International Exchange will initially allow certain institutional investors in eligible jurisdictions to trade via API. This means that the product is not yet available as a full-fledged app or website. Contracts will allow up to 5x leverage, and all trading will be settled in Circle’s stablecoin USDC.
Coinbase eyes global crypto market
The launch of the Coinbase International Exchange demonstrates the company’s eagerness to enter the global crypto market while continuing to navigate the uncertain regulatory landscape in the US.
As countries around the world develop crypto-friendly regulations, the company aims to seize the opportunity to expand its services and position itself as a key player in the international market.
Coinbase’s decision to launch an international crypto exchange marks an important milestone in the company’s global expansion strategy.
By offering perpetual futures trading and adhering to high standards of customer protection and risk management, Coinbase is poised to make its trusted products and services more accessible to users outside the US.
As the regulatory environment in the US remains uncertain, this international venture could play a crucial role in the company’s future growth and success.