Coinbase, a US-based cryptocurrency exchange, has been approved by the Bermuda Monetary Authority to operate in Bermuda. It aims to launch an offshore derivatives marketplace in the area soon. The CEO of Coinbase, Brian Armstrong, recently stated that if the regulatory framework for the digital asset sector is not appropriate, then the company may relocate to another country. Coinbase has praised Bermuda for being one of the first financial hubs to have passed “comprehensive” crypto regulation in 2018.
Is Bermuda the Next Destination?
Coinbase has obtained a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA) and may use this license to launch an offshore derivatives exchange in Bermuda in the coming days. According to a report by Fortune, the authorization could allow Coinbase to proceed with launching an offshore derivatives exchange in Bermuda. Coinbase has also expanded into Brazil by integrating with the country’s Pix instant payment platform.
“First, we’ve made it simple for you to top up and withdraw money from your Coinbase account using Brazilian Real, thanks to our integration with Pix, a well-known instant payment platform created and managed by the Central Bank of Brazil,” the company announced last month.
Coinbase is strengthening its presence in the Canadian market by collaborating with domestic policymakers and regulators and hiring a new Country Director. Furthermore, the company is planning to secure a license from the authorities of the United Arab Emirates (UAE).
The UK as an Option
Coinbase’s international expansion seems to stem from regulatory uncertainty in the US. Armstrong recently urged American authorities to enforce relevant crypto rules to prevent firms from moving to other countries. He highlighted the UK as a potential key market for the digital asset sector and praised the authorities for creating a welcoming regulatory environment. His words have sparked speculation that Coinbase may set up headquarters in the country. He stated, “Anything is on the table, including relocation or whatever is necessary.”