Coinbase Offers up to 5X Leverage with International Exchange Launch

  • Coinbase International Exchange is based outside of the U.S.
  • Institutional clients can trade perpetual futures contracts with up to 5x leverage.
  • Coinbase made comments on why it has decided to launch a new exchange offshore.

The current crypto bear market has been brutal not only because of the plummeting digital asset prices but also because of regulatory response, especially in the U.S.

The regulatory environment for crypto companies in the U.S. has become so restrictive that Coinbase has decided to launch its new derivatives exchange offshore.

Coinbase Launches New International Exchange

Coinbase, the largest crypto exchange in the U.S., announced on Tuesday that it’s launching a new derivatives exchange called Coinbase International Exchange.

The new exchange is based in Bermuda, where Coinbase was recently granted a regulatory license from the Bermuda Monetary Authority (BMA).

Institutional clients based in eligible jurisdictions outside of the U.S. can now trade perpetual futures contracts with up to 5x leverage on Coinbase International Exchange. The exchange listed BTC and ETH perpetual futures contracts earlier today.

Coinbase said that it’s still committed to the U.S. market but would like to see the country become a “crypto hub” instead of “regulation by enforcement.”

“Rest assured that Coinbase is committed to the U.S, but countries around the world are increasingly moving forward with responsible crypto-forward regulatory frameworks to strategically position themselves as crypto hubs. We would like to see the U.S. take a similar approach instead of regulation by enforcement which has led to a disappointing trend for crypto development in the U.S.”

Coinbase stock reacted positively to the news. COIN is currently trading at $51.67, up more than 3% on the day, according to data from Yahoo! Finance.

On the Flipside

  • Coinbase International Exchange is currently available only for institutional investors. It’s unclear when retail investors will get access to it.

Why You Should Care

Coinbase is the second-largest crypto exchange in the world. It’s encouraging to see the exchange find ways to develop new products and services despite the unwelcoming regulatory environment in the U.S.

Read more about Coinbase’s crypto advocacy efforts:

Coinbase Turns to NFTs in Crypto Advocacy Efforts After Suing SEC

Read more about Franklin Templeton’s fund launching on Polygon:

Franklin Templeton Launches $270M Money Market Fund on Polygon

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