Coinbase Expands Retail Access to Perpetual Futures Trading

This approval opens up the crypto market, which is mainly institution-dominated, to retail traders, offering them a secure entry point.

Coinbase Expands Retail Access to Perpetual Futures Trading
Coinbase Expands Retail Access to Perpetual Futures Trading

Coinbase International Exchange, a holder of a class F license from the Bermuda Monetary Authority (BMA), has announced that it has received additional regulatory sanction, allowing the platform to offer perpetual futures trading to retail customers outside of the United States.

Coinbase International was launched in May 2023 and offered crypto derivatives to institutional customers. With the most recent regulatory sanction, the crypto platform will provide eligible customers with access to regulated perpetual futures contracts on the Coinbase Advanced platform within the next few weeks.

The exchange claimed that Coinbase Bermuda is in charge of maintaining perpetual futures accounts and that the BMA oversees them.

In its announcement, the cryptocurrency exchange stated that nearly 75% of crypto trading volume originates from the derivatives market and that the recent regulatory approval would enable retail traders to access the crypto derivatives market, which is primarily dominated by institutions.

Additionally, the cryptocurrency platform stated that Coinbase does not indulge in market-making. It was stated that the liquidity on the exchanges is provided by reputable, independent liquidity providers who have undergone stringent compliance audits.

Coinbase asserted that its platform would provide retail traders with a secure and competent entry point to the derivatives market.

Coinbase International Exchange is restricted to non-U.S. consumers in a few countries, and customers must pass a test to determine their eligibility for the product before they can establish a Coinbase Advanced trading account.

The recent approval for Coinbase International to offer perpetual futures to retail customers comes less than a month after the platform received approval from the National Futures Association (NFA) to offer crypto futures investments to eligible U.S. institutional clients.

Despite its regulatory conflict with the Securities and Exchange Commission over its services, Coinbase has continued to expand internationally.

At the beginning of June, the regulator filed a lawsuit against Coinbase, alleging that the exchange violated local securities laws by selling unregistered securities.