By Anushree Dave
On Tuesday, Coinbase (COIN), the largest cryptocurrency exchange in the US, announced the launch of a new product for cryptocurrency investors outside the country. The newly formed international exchange will allow institutional investors based in eligible jurisdictions to trade perpetual futures, according to a statement from Coinbase.
A perpetual future is a type of financial derivative contract with no settlement time or expiration date, and according to Coinbase, perpetual futures trading accounted for around 75% of global crypto trading volume last year.
The news comes after ongoing back and forth between Coinbase and the US Securities and Exchange Commission, which cracked down on US cryptocurrency companies last year, especially after the stock market crashed. of FTX cryptocurrencies in November 2022.
In April, Coinbase sued the SEC in an effort to get a clearer response to a petition the company filed last July, asking the SEC to outline clear guidance on how to regulate digital assets. This came just a month after the SEC sent Coinbase a notice from Wells, which identified potential securities law violations that could prompt them to take legal action.
โCoinbase chose to become a public company in the US because we believe the US would best benefit from embracing this critical innovation,โ Coinbase said in a statement on Tuesday. "But we also focus on international markets, many of which are moving forward with strategies to become 'crypto hubs'."
Initially, the Coinbase International Exchange will only be accessible through an API, which means that it currently does not have an app or website for users.
-Anushree Dave
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05-02-23 1559ET
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