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Coinbase Expansion: Perpetual Futures on Horizon

Martin Walker
Sep 28, 2023 at 05:09 pm

Coinbase Global Exchange, a distinguished bearer of the esteemed Class F license granted by the Bermuda Monetary Authority (BMA), recently celebrated a triumph on the regulatory front. This pivotal development unfurled new horizons, allowing the platform to extend the opportunity of perpetual futures trading to its esteemed non-U.S. retail clienteles.

Springing to life in the promising month of May in the year 2023, Coinbase Global Exchange had already embarked on the journey of providing crypto derivative services to its discerning institutional patrons. Now, bolstered by this latest regulatory endorsement, the platform stands on the precipice of bestowing eligible users with access to meticulously regulated perpetual futures contracts, all within the innovative realm of the Coinbase Advanced platform, set to come to fruition in the forthcoming weeks. It's noteworthy to emphasize that the perpetual futures accounts will be meticulously managed under the vigilant oversight of Coinbase Bermuda, subject to the scrupulous regulatory purview of the BMA.

As per the insightful proclamation from the exchange, it comes to light that nearly a staggering three-quarters of the crypto trading volume finds its origin in the dynamic derivatives market. This recent green signal on the regulatory spectrum is envisaged to usher in a new era, democratizing participation for retail traders in this derivatives market, historically held within the firm grip of institutional behemoths.

The crypto platform, with due transparency, clarified that Coinbase does not partake in market-making activities. In this ecosystem of liquidity, the lifeblood of the exchanges, the sustenance comes from well-established, independent liquidity providers, having been subjected to thorough compliance reviews, ensuring a robust and compliant marketplace.

Adding a feather to its cap, the announcement from Coinbase emphasized that their illustrious platform is poised to serve as a secure and proficient gateway, enabling retail traders to navigate the derivatives market with confidence and finesse. However, it's important to note that access to Coinbase Global Exchange is selectively granted to customers hailing from a few chosen non-U.S. countries, subject to a rigorous evaluation process to ascertain their eligibility before they can partake in the offerings through a Coinbase Advanced trading account.

This recent nod of approval for Coinbase Global Exchange to extend perpetual futures to the cherished retail customers is like the sweet crescendo of a well-composed symphony, coming just a month after the platform received the esteemed clearance from the National Futures Association (NFA). This clearance opened the door for the platform to extend its offerings, beckoning eligible institutional clients within the United States to partake in the fascinating world of crypto futures investments.

Despite the labyrinthine regulatory terrain in the United States, Coinbase has showcased resilience and determination in making significant strides beyond the nation's borders. A regulatory battle with the U.S. Securities and Exchange Commission did little to deter their progress. In the early days of June, the regulator filed a lawsuit against Coinbase, alleging violations of local securities laws pertaining to the sale of unregistered securities. Yet, Coinbase continues to chart its course, navigating the complex waters of regulation and innovation, poised for a promising journey ahead.

Read more: Ledn's ETH Yield: Sailing Beyond BTC Shores

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