Coinbase launches international exchange amid tensions with SEC

Coinbase, one of the largest crypto exchanges by trading volume, has launched an international platform following tensions with US SEC. The exchange will roll out Bitcoin and Ethereum perpetual futures trading to commence trading.

Coinbase takes a giant step following unfriendly US regulations

Brian Armstrong, Coinbase CEO, is guiding his company to fight back against US SEC regulations after the authority threatened to take legal action against his company. The SEC issued a wells notice earlier in the year after it charged Kraken for offering crypto staking services in the US without its knowledge.

Armstrong strongly condemned the authority for its method of administration, saying that it sought to charge companies rather than formulate workable regulatory frameworks first. He said the exchange would seek to go offshore as other crypto companies could follow suit.

1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.

— Brian Armstrong 🛡️ (@brian_armstrong) March 22, 2023

He added that his company was not scared of starting a legal battle with the SEC for what it considered an ‘unfavourable’ regulation style for their business. On May 2, 2023, the exchange announced the launch of Coinbase International Exchange (CIE), a new institutional platform designed and optimized for crypto derivatives trading.

The exchange will start by listing Bitcoin and Ethereum perpetual futures later in the week. It will operate by settling all trading in Coinbase-backed stablecoin USD Coin, requiring no fiat on-ramps. The exchange has stressed that direct access trading on the new platform will be available to institutional traders via application programming and eligible to non-U.S. jurisdictions. As such, those products won’t be available to retail investors initially.

According to the exchange’s announcement, the new international platform has been launched with the help of Bermuda regulators. The exchange received a license from the Bermuda regulators in Mid-April. The Class F license issued by the regulators will allow the exchange to operate as a digital asset exchange and a digital asset derivatives exchange provider. It will also grant the platform permission to operate activities like token sales and issuance.

Keep watching Fintech Express for updates on the developments surrounding CIE, Coinbase vs SEC and other crypto-related news.