BMA Grants Coinbase License to Operate in Bermuda

The Bermuda Monetary Authority(BMA) has granted Coinbase a Class F Digital Assets Business Act license.

According to the company’s blog post published on Wednesday, Coinbase has received a Class F Digital Assets Business Act license from the Bermuda Monetary Authority, allowing the company to offer trading and custody services for digital assets in Bermuda.

The company stated that Bermuda was one of the first financial centers in 2018 to adopt complete regulation of digital assets whose regulatory framework is well-known for its high standards of rigor, openness, compliance, and cooperation.

In addition, rumor has it that  Coinbase will launch an offshore derivatives exchange in Bermuda next week. The exchange will allow users to trade a range of derivatives products relating to cryptocurrencies, including futures, options, and swaps. This move is considered to be an important step forward for the cryptocurrency industry since it enables the development of a more robust market for Bitcoin derivatives.

Also, Coinbase plans to establish a presence in Bermuda, to provide additional services to its customers in the region. The company sees Bermuda as a highly regarded and experienced financial regulator overseen by a world-class management team and board of directors. The BMA is also a member of several international organizations and works closely with other regulatory bodies all around the world.

The Bermuda license comes just one day after Coinbase CEO Brian Armstrong said the company may consider moving its headquarters out of the United States if the government fails to provide clear regulatory guidelines.

In the United States, Coinbase has faced a number of legal lawsuits. In March, it received a Wells notice from the Securities and Exchange Commission (SEC). In January, the company reached an unrelated settlement with the New York Department of Financial Services (NYDFS), and in 2021, it settled with the Commodities Futures Trading Commission (CFTC).

This Bermuda license is one of  Coinbase’s strategies of a “go broad and go deep approach” to guarantee that it can serve consumers globally.

Read Also; PEPE soars in over $100M in volume ready to take over