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Securing US Alternatives: Coinbase Obtains a License in Bermuda

Summary:
The US-based cryptocurrency exchange – Coinbase – received approval from the Bermuda Monetary Authority to operate on the island. It also intends to establish an offshore derivatives marketplace in the region as soon as next week. CEO Brian Armstong recently said his entity could relocate to other countries if the American 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 secured a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA). It also praised the island nation for being among the first financial hubs to pass “comprehensive” crypto regulation in 2018.  “Bermuda was chosen as one of our international hubs as the BMA is a

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The US-based cryptocurrency exchange – Coinbase – received approval from the Bermuda Monetary Authority to operate on the island. It also intends to establish an offshore derivatives marketplace in the region as soon as next week.

CEO Brian Armstong recently said his entity could relocate to other countries if the American 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 secured a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA). It also praised the island nation for being among the first financial hubs 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 might use the authorization to launch an offshore derivatives exchange in Bermuda in the following days.

The British Overseas Territory in the Atlantic Ocean is not the only destination the firm has set eyes on. It recently expanded into Brazil by integrating the local instant payment system “Pix.”

“First, we’ve made it simple for you to top up and withdraw money from your Coinbase account using Brazilian Real, thanks to our integration with Pix, a well-known 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 collaborating with domestic policymakers and regulators. It also revealed plans to secure a license from the authorities of the United Arab Emirates (UAE). 

The UK Sounds Like an Option, Too

The main reason for Coinbase’s international expansion seems to be the regulatory uncertainty that reigns in the USA. Earlier this week, CEO Armstrong urged the American authorities to enforce pertinent crypto rules to prevent the outflow of firms to other nations.

While highlighting his homeland as a potential key market for the digital asset sector, he hinted that his platform might move in the near future should the situation remains the same:

“Anything is on the table, including relocation or whatever is necessary.”

He recently praised the UK’s approach, claiming the authorities have realized the potential of the industry and started creating a welcoming regulatory environment. His words triggered rumors that Coinbase might set up headquarters in the Kingdom. 

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