• Coinbase, a US-based cryptocurrency exchange, has been granted approval from the Bermuda Monetary Authority to operate on the island.
• Coinbase intends to launch an offshore derivatives marketplace in Bermuda as soon as next week.
• The Bermuda Monetary Authority granted Coinbase a Class F License under the Digital Asset Business Act.
Coinbase Obtains License in Bermuda
The US-based cryptocurrency exchange – Coinbase – recently received approval from the Bermuda Monetary Authority to operate on the island. It also plans to launch an offshore derivatives marketplace there as soon as next week. The firm was awarded a Class F License under the Digital Asset Business Act from the BMA, praising the nation for being one of the first financial hubs to pass comprehensive crypto regulation in 2018.
Reason Why Coinbase Chose Bermuda
Coinbase chose Bermuda due its highly respected and experienced financial regulator which is led by world-class executive team and board of directors. Additionally, it is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world.
Potential Relocation if Regulatory Framework Not Satisfactory
CEO Brian Armstong previously suggested that his entity could relocate to other countries if American watchdogs do not impose an appropriate regulatory framework on digital asset sector. This license allows them move forward with their plans without having to worry about any issues related to relocating their operations elsewhere.
Benefits of Operating in Bermudan Financial Hub
By operating within this Bermudan financial hub, Coinbase will be able to access new markets and customers while also taking advantage of local expertise. Furthermore, this move will help them comply with regulations across multiple jurisdictions and access global liquidity pools for its users more efficiently than ever before.
Conclusion
This license grant comes at a crucial time for Coinbase as they plan for growth in 2021 and beyond into new markets and product verticals outside of just trading digital assets. With this license grant from the BMA, they are well on their way towards furthering their mission of creating an open financial system for everyone around the world!