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The U.S.-based crypto exchange has recently acquired the license required to offer crypto trading services in the island territory of Bermuda.
Coinbase Bermuda Receives License
At a time when U.S. regulators, like the SEC, are making it harder and harder for crypto companies to survive, Coinbase has made the prudent decision to take matters offshore. The crypto exchange had recently applied for the operational license for the offshore haven of Bermuda. In a blog published on the company website on April 19, it was revealed that the application was approved, and the license was granted to Coinbase.
“Coinbase Bermuda Ltd. has obtained a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA).”
According to reports, thanks to the license, Coinbase is all set to launch a crypto derivatives exchange in Bermuda as soon as next week.
BMA Makes Bermuda A Crypto Haven
The announcement also addressed the factors which drove the company to branch out its operations to the island, touching upon the comprehensive digital assets regulation guidelines that were passed in 2018. Furthermore, the announcement claimed that the Bermuda Monetary Authority (BMA) is a highly respected and experienced financial regulator with tremendous leadership and was also another contributing factor to the establishment of Coinbase Bermuda Ltd. The fact that BMA is also a member of several international organizations and has worked closely with other regulatory agencies around the world is an added advantage.
The team wrote,
“Working with global regulators is key to the Coinbase mission, as we continue to increase economic freedom in the world. As the most transparent and trustworthy centralized exchange, Coinbase will help bring the next billion users into the cryptoeconomy.”
Trouble With SEC
The company’s CEO, Brian Armstrong, has categorically stated that the crypto firm will be exploring all its offshore options, especially regulatory havens like Bermuda, unless there is more clarity from the UK and U.S. watchdogs. Coinbase has recently been in trouble with the SEC, which has served the company with a Wells notice. The high probability of a lengthy court battle with the regulatory watchdog could have been a key motivating factor to its increased offshore efforts lately. Other than Bermuda, the firm is also in talks with the financial regulators in Abu Dhabi about a potential operating license.
The company hinted at its regulatory troubles,
“Coinbase chose to become a public company in the US because we believe the US would best be served by embracing this fundamental innovation, but we’re also focused on international markets, many of which are moving forward with strategies to become “crypto hubs.” We would like to see the US take a similar approach, but a regulation by enforcement approach in the US is instead leading to a disappointing trend for crypto development in the US.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.