Coinbase Receives Bermuda License, Could Open Offshore Exchange Next Week – NewsTo
Coinbase Receives Bermuda License, Could Open Offshore Exchange Next Week

Coinbase Receives Bermuda License, Could Open Offshore Exchange Next Week


Coinbase, a cryptocurrency exchange with headquarters in the United States, has been granted permission to conduct business in Bermuda and is expected to open a derivatives exchange there as early as next week.

In a blog post published on April 19, Coinbase claimed that it had “received our regulatory license to operate from the Bermuda Monetary Authority” – the country’s financial regulator.

With the help of the license, known as a Class F License under the Digital Asset Business Act, Coinbase has the ability to carry out a variety of operations, including token sales and issuance. Furthermore, it enables it to function as a provider of digital asset derivatives exchange services as well as a digital asset exchange.

Coinbase Receives Bermuda License, Could Open Offshore Exchange Next Week

According to a Forbes article dated April 19 that cited “a person close to the company,” Coinbase plans to open a derivatives exchange in Bermuda as early as next week.

Bermuda “was chosen as one of our financial hubs” because of its clear regulations, according to Coinbase, which also said that the country’s regulatory framework “is long known for a high level of rigor, transparency, compliance, and cooperation.”

Because it happened so soon after CEO Brian Armstrong said at a fintech conference in London that the exchange might think about leaving the United States due to a lack of regulatory clarity, some in the crypto community believe this most recent development could mark the start of Coinbase’s end in the country.

In November of last year, Armstrong said that the Securities and Exchange Commission had failed to offer regulatory certainty and was pushing investors and trading activity abroad. Armstrong has been vocal about his views on the state of cryptocurrency regulations in the United States. 

The tax laws of a Bermuda-based exchange are another evident benefit. Employers in Bermuda must pay payroll taxes, but because the country has a corporate tax rate of 0%, profits are tax-free, making it a desirable base for businesses trying to reduce costs.

The most recent development is an update to Coinbase’s “go broad and go deep” campaign, which sees it aiming to “establish regulated entities and local operations” to support global expansion.

It also highlighted its development in Europe, the United Arab Emirates, Singapore, Brazil, and Canada, adding:

“We will work with governments and regulators in different markets and always aim to be the most trusted and compliant crypto company in any market,” the company said. “Our approach globally will be consistent with our approach in the United States.”



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