Coinbase rolling out perpetual futures trading for retail users outside US

Quick Take

  • Coinbase has gained approval to offer non-U.S. retail users perpetual futures trading from the Bermuda Monetary Authority.
  • About 75% of global crypto trading volume comes from derivatives market activity, according to the exchange.

After handling billions of dollars in institutional futures trading, Coinbase has secured approval to offer perpetual futures trading services to retail customers outside the United States, it said in a statement.

The exchange gained regulatory approval to offer the service to non-U.S. retail customers from the Bermuda Monetary Authority, or BMA, according to the statement. Through its Coinbase International Exchange arm, the exchange has seen more than “$5.5 billion in notional [futures] trading volume from institutions as of the second quarter of this year,” it also said.

Earlier this year, Coinbase launched its international division with approval from the BMA to offer non-U.S. institutional clients perpetual futures trading. About 75% of global crypto trading volume comes from derivatives market activity, according to the exchange.

“As announced in the Phase II of our “Go Broad, Go Deep” strategy, we are dedicated to partnering with high-bar global regulators to build a crypto regulatory framework that allows crypto technology to continually drive innovation,” Coinbase also said. 

Coinbase’s international strategy zeroes in on 24 countries, including the G20 members, together with Hong Kong, Switzerland, the United Arab Emirates and Singapore. The company has said it is eyeing next year’s G20 in Brazil as a forum through which to continue its push for a more concrete set of international rules.


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Coinbase's woes in the US

Given Coinbase’s ongoing struggles with the Securities and Exchange Commission, the company also took a shot at U.S. regulatory uncertainty in its statement.

“We chose to build our business and become a public company in the U.S., believing that the U.S. should be at the forefront of efforts to update our financial system,” it said. “We are excited to further our mission to help update the global financial system and provide more economic freedom and opportunity for users around the world.”

Last month, Coinbase secured regulatory approval from the National Futures Association to operate as a futures commission merchant and offer eligible U.S. customers access to crypto futures from its platforms.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.