Coinbase receives regulatory approval to enable retail perpetual futures trading

In May 2023, we announced the launch of Coinbase International Exchange: a new, non-US exchange, accompanying a class F license from the Bermuda Monetary Authority (BMA) to allow non-US institutions to trade perpetual futures. Today, we are excited to announce that Coinbase International Exchange has received additional regulatory approval from the BMA to extend perpetual futures trading to non-US retail customers. In the coming weeks, we will begin to offer eligible customers access to regulated perpetual futures contracts on Coinbase Advanced. Check your eligibility now.

Expanding access to the global derivatives market with forward-looking regulators 

As announced in the Phase II of our “Go Broad, Go Deep” strategy, we are dedicated to partnering with high-bar global regulators to build a crypto regulatory framework that allows crypto technology to continually drive innovation. We chose to build our business and become a public company in the US believing that the US should be at the forefront of efforts to update our financial system. However, in expanding greater access to perpetual futures to eligible non-US customers, we are excited to further our mission to help update the global financial system and provide more economic freedom and opportunity for users around the world.

Access perpetual futures from the safest, most trusted name in crypto

This regulatory approval comes at a time when other crypto exchanges are facing increased scrutiny from local regulators and backing away from various regions. The global crypto derivatives market represents ~75% of crypto trading volume worldwide, clearly indicating a strong demand from traders for derivatives. However, only a few trusted players exist in the global crypto derivatives market that provide the security and transparency that crypto traders need to trade with confidence. 

At Coinbase, our perpetual futures contracts have been built within rigorous compliance standards on Coinbase International Exchange and have already seen over $5.5 billion in notional trading volume from institutions as of Q2. Coinbase International Exchange follows the robust regulatory framework established by the BMA, maintaining high standards of risk management, compliance and user protections.

How are we different?

• As the most secure and compliant crypto exchange, customers are confident that their assets are safe with Coinbase. Our publicly filed, audited financial statements show that we hold customer assets 1:1. 

• Coinbase International Exchange is well capitalized via its Insurance Fund and Liquidity Support Program funded in USDC, a highly-liquid stablecoin, not an exchange token. 

• We have an experienced, dedicated risk team. Members of our team have decades of experience managing trading and credit businesses across a range of economic cycles.

• Coinbase does not engage in market making. The liquidity on our exchanges is provided by established and independent liquidity providers who have undergone thorough compliance reviews.

Starting today, non-US retail traders will be able to check their eligibility for perpetual futures on Coinbase Advanced with trading to officially begin in the coming weeks. Follow @CoinbaseIntExch on Twitter for the latest updates. 

If you are an institutional investor outside of the US and want to learn more about trading perpetual futures on Coinbase International Exchange, reach out to intx.enquiries@coinbase.com.

Coinbase International Exchange is only available to non-US customers in select jurisdictions. In order to create a Coinbase Advanced trading account, customers will need to pass through our standard assessment checks to determine their eligibility for this product. The information provided is for educational purposes only. All trading and investment strategies involve risk, including risk of loss, and thus may not be suitable for everyone.

Perpetual Futures accounts are maintained by Coinbase Bermuda Limited (dba Coinbase International Exchange), which is regulated by the Bermuda Monetary Authority (BMA).