US-based cryptocurrency exchange Coinbase has received approval from the Bermuda Monetary Authority to operate on the island. It also intends to establish an offshore derivatives market in the region as soon as next week.
CEO Brian Armstong recently said that his entity could move to other countries if US watchdogs do not impose an appropriate regulatory framework on the digital asset sector.
Next stop: Bermuda?
Coinbase announced in a blog post that it had obtained a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA). He also praised the island nation for being among the first financial centers to pass “comprehensive” crypto regulation in 2018.
“Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator that is led by a world-class executive team and board of directors. The BMA is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world,” the exchange explained.
According to a Fortune report, Coinbase could use the authorization to launch an offshore derivatives exchange in Bermuda in the days that follow.
The British Overseas Territory in the Atlantic Ocean is not the only destination the firm has set its sights on. Recently expanded in Brazil by integrating the local instant payment system “Pix”.
“First, we’ve made it easy for you to top up and withdraw money from your Coinbase account using Brazilian reais, thanks to our integration with Pix, a popular instant payment platform created and managed by the Central Bank of Brazil.” the company announced last month.
Coinbase strengthened its presence in the Canadian market by hiring a new Country Director and engaging with national legislators and regulators. He also revealed plans to obtain a license from the United Arab Emirates (UAE) authorities.
The UK also sounds like an option.
The main reason for Coinbase’s international expansion appears to be regulatory uncertainty in the US. Earlier this week, CEO Armstrong urged the US authorities to enforce the relevant cryptographic standards to prevent the departure of companies to other nations.
While he highlighted his homeland as a potential key market for the digital asset sector, he hinted that his platform could move in the near future if the situation remains the same:
“Everything is on the table, including relocation or whatever it takes.”
He recently praised the UK’s approach, saying that the authorities realized the potential of the industry and started to create a welcoming regulatory environment. His words sparked rumors that Coinbase might set up a headquarters in the Kingdom.
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