Coinbase says it received a license to operate in Bermuda; source: the company plans to launch an offshore derivatives exchange in Bermuda as soon as next week
Coinbase has received a license to operate in the off-shore haven of Bermuda, signaling that the company is doubling-down on plans …
FortuneJeff John Roberts
Context & Ripple Effects
The Bermuda license marked an early step in Coinbase's effort to build an international derivatives business while its U.S. regulatory position was under pressure. The plan was quickly operationalized through the launch of Coinbase International Exchange for international perpetual-futures trading.
Later Bermuda approval to offer perpetual futures to non-U.S. retail users broadened the exchange's intended customer base, showing the initial license was a foundation for a progressively wider offshore product rollout.
First-order effects
Coinbase can establish a Bermuda operating presence and move ahead with its planned offshore derivatives exchange, subject to the terms of its authorization.
International users gain a prospective Coinbase venue for derivatives products outside the U.S. market.
Second-order effects
The launch gives Coinbase another route to serve non-U.S. derivatives demand as it tussles with U.S. regulators, separating that activity from its domestic platform.
Bermuda's regulator becomes a key gatekeeper for Coinbase's international product expansion; later approval for non-U.S. retail perpetuals illustrates how product scope depends on local permissions.
Third-order effects
If major exchanges continue to build country-specific regulated operations, crypto derivatives distribution is likely to become more jurisdictionally segmented rather than centered on a single global platform.
The pattern shifts competitive advantage toward firms able to secure and maintain multiple licenses, though the eventual scope remains dependent on each regulator's treatment of retail derivatives.
The trend: This is one step in crypto exchanges' broader move to assemble regulated international derivatives networks market by market.
Coinbase lost market share by playing it safe with US regulators. Now they're done playing nice and ready to shake things up. I'm glad it's finally happening! 🚨🚨🚨 BREAKING: Coinbase gets Bermuda license, plans to launch an offshore exchange in coming weeks
1/ More than halfway through our 8-week international expansion drive we wanted to give you an update on how we are doing. Read more 👇 https://www.coinbase.com/...
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