Coinbase crypto exchange has acquired a Class F license from the Bermuda Monetary Authority (BME) under the Digital Asset Business Act.
This license will enable Coinbase to launch an offshore derivatives exchange platform for trading perpetual swaps tied to cryptocurrencies as soon as next week.
The report suggests that Coinbase selected Bermuda as one of its international hubs due to its extensive experience in financial regulations.
Coinbase’s CEO, Brian Armstrong, recently called for clearer regulations on cryptocurrency in the US and the UK. He argued that without such laws, companies may be forced to develop in “offshore havens,” where they may be subject to less oversight and regulation.
Armstrong believes that offshore locations with less regulatory oversight pose a risk to the legitimacy of the cryptocurrency industry.
Governments around the world are struggling to keep up with the regulations of cryptocurrencies, resulting in different countries approaching their regulation differently, leaving many companies operating in regulatory grey areas.
Armstrong has urged the US and the UK to set an example for other countries and create clear guidelines for the regulation of cryptocurrency, which could lead to increased legitimacy and growth for cryptocurrency.