Coinbase has launched an international exchange — allowing institutional traders outside the United States to trade Bitcoin (BTC) and Ethereum (ETH) perpetual futures.
Trades on the new platform would be settled in USD Coin (USDC), and no fiat on-ramps would be required. It added that its perpetual futures contracts offer up to five times leverage.
According to a May 2 statement, the new exchange was launched on the back of its recent regulatory approval from the Bermuda Monetary Authority (BMA). The exchange said it holds a Class F digital assets business license under the Digital Assets Business Act 2018 (as amended) and is licensed by the BMA.
Coinbase International Exchange will serve institutional clients only
Coinbase International Exchange (CIE) website showed that the exchange is only available “to non-US institutions in select jurisdictions.” The FAQ stated that the exchange plans to expand its platform to serve “non-US professional investors and advanced retail users in eligible countries” later this year.
“Direct access trading via API is available to institutional clients in eligible, non-US jurisdictions. These products are not available to retail customers at this time. “
Coinbase has faced increased regulatory scrutiny recently. The exchange received a Well Notice from the U.S. Securities and Exchange Commission (SEC) over some of its products in March.
Since then, the exchange has been involved in a war of words with the financial regulator, arguing that it does not list securities and also filing a legal action against the Commission.
Meanwhile, CEO Brian Armstrong hinted that the firm might consider leaving the U.S. if the regulatory landscape does not improve.
Coinbase shares downgraded
Over the past month, the exchange has seen its shares shed more than 20% — dropping from as high as $72 in April to $50.1 as of May 1, according to Tradingview data.
Meanwhile, CNBC reported that leading financial institution Citi downgraded shares of the exchange earlier today to neutral — citing the current regulatory headwind the exchange is facing.
CEO Armstrong offloaded over $2 million of the exchange’s stock during this period.
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