• Coinbase is launching an offshore crypto derivatives exchange based in Bermuda.
• The new platform, Coinbase International Exchange, will offer perpetual futures contracts with up to five times leverage, and all trades will settle in USDC stablecoin.
• Gemini announced the launch of its own international crypto derivatives exchange on the same day.
Coinbase Launches Offshore Crypto Derivatives Exchange
Coinbase has launched a new offshore crypto derivatives exchange in Bermuda called Coinbase International Exchange as part of its international expansion plans. This platform will offer traders the opportunity to bet on the price of Bitcoin (BTC) and Ether (ETH) via perpetual futures contracts with up to five times leverage, and all trades will settle in USDC stablecoin.
Gemini Announces International Crypto Derivatives Exchange
On the same day that Coinbase announced its new offshore exchange, Gemini also launched its own international crypto derivatives exchange. This move reflects the pressure faced by U.S.-based crypto trading firms due to regulatory headwinds at home which has led to a “disappointing trend for crypto development” in America. These companies are therefore looking overseas for more favorable regulatory environments which would allow them to offer more derivative products without facing such heavy regulatory oversight as they would in their home countries.
Regulatory Environment Impacts Crypto Firms
The current regulatory environment has made it difficult for cryptocurrency firms to operate within the United States due to tight restrictions surrounding derivative trading. To get around this issue, some companies have chosen to set up shop abroad where laws are more lenient and supportive of blockchain-related businesses; however, Coinbase insists that it remains committed to providing services in America despite this challenge. To this end, they are calling on American lawmakers to take a “similar approach instead of regulation by enforcement” so that domestic firms can be competitive with their foreign counterparts and better serve their customers without fear of government interference or retribution.
Stablecoins Used for Settle Transactions
Both exchanges will use stablecoins such as USDC for settlement purposes when conducting transactions via these platforms; this ensures that traders have access to an asset with low volatility which helps reduce counterparty risk associated with trades involving volatile digital assets like Bitcoin or Ethereum. Stablecoins also provide an easy way for users from different countries or regions around the world who may not have access to traditional banking services or payment methods like credit cards or PayPal accounts – something which further increases accessibility and utility when using these platforms compared traditional stock exchanges or other finance-related markets.
In conclusion, both Coinbase and Gemini have taken steps towards expanding into overseas markets by launching their respective cryptocurrency derivative exchanges outside of America where regulations are friendlier towards blockchain technology-based businesses; however, both companies remain committed to serving customers within the United States despite challenges posed by local authorities over certain types of activities such as derivative trading being effectively banned domestically at present time