Coinbase obtains a Bermuda license, and an offshore exchange may go live next week

According to reports, the United States-based cryptocurrency exchange intends to swiftly establish a derivatives exchange in the island nation.

Coinbase, a cryptocurrency exchange based in the United States, has reportedly received a license to operate in Bermuda and will launch a derivatives exchange there as early as next week.

According to a blog post published on April 19, Coinbase disclosed that it had “received our regulatory licence to operate from the Bermuda Monetary Authority” — the country’s financial regulator.

This license, a Class F Licence under the Digital Asset Business Act, permits Coinbase to engage in a variety of activities, including token sales and issuance. It also allows it to operate as a digital asset exchange and a provider of digital asset derivatives exchanges.

Forbes reported on 19 April, citing “a person close to the company,” that Coinbase plans to establish a derivatives exchange in Bermuda as early as the following week.

Coinbase cited precise regulations as the reason Bermuda “was selected as one of our financial hubs” and explained that Bermuda’s regulatory environment “has long been recognised for its rigour, transparency, compliance, and cooperation.”

Some members of the cryptocurrency community believe that the latest development could be the beginning of the end for Coinbase in the United States, as it occurred just one day after Coinbase CEO Brian Armstrong stated at a London fintech event that the exchange may consider leaving the country due to a lack of regulatory clarity.

Armstrong has been extremely vocal about his opinion on the current state of crypto regulations in the United States, contending in November 2017 that the Securities and Exchange Commission’s failure to provide regulatory clarity is driving investors and trading activity abroad.

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