Coinbase secures regulatory license in Bermuda, seeks approval in Abu Dhabi

Major crypto exchange Coinbase has obtained a license from Bermuda authorities to operate as a regulated entity in the British Island Territory. The company is also looking to get a regulatory license from Abu Dhabi. 

Coinbase has expanded its services to Bermuda with a Class F license issued by the Bermuda Monetary Authority (BMA) under the Digital Asset Business Act passed in 2018, the crypto exchange announced in a blog post

The license will enable the crypto exchange to issue, sell, or redeem digital assets, and provide custodial wallet services. Also, Coinbase will be able to operate as a digital asset exchange, asset trust service, and asset derivatives exchange provider, among other services in Bermuda. There are reports that the company plans to establish an offshore derivatives exchange on the Island “as soon as next week.”

Coinbase cited Bermuda’s robust, transparent, and compliant regulatory environment, which could have formed part of the reasons for expanding into the British Overseas Territory. 

Besides Bermuda, Coinbase is also eyeing Abu Dhabi and is talking with Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) for a regulatory license. The firm has further set its footprints in Brazil, Singapore, and Canada. At the same time, CEO Brian Armstrong recently held a meeting with the United Kingdom’s Economic Secretary and City Minister, Andrew Griffith.

The U.S. being left behind

Meanwhile, Coinbase’s recent expansion efforts are part of its “Go Broad and Go Deep strategy,” which aims to work with global regulators to ensure investor protection, boost consumer confidence, and institute regulated local entities across various jurisdictions with high regulatory standards to facilitate international growth. 

The latest development comes as Coinbase is considering leaving the United States because of the country’s lack of regulatory clarity and stringent policies stunting crypto growth in the US. Coinbase has recently faced regulatory pressure in the United States and was issued a Wells notice by the Securities and Exchange Commission (SEC). 

“Coinbase chose to become a public company in the US because we believe the US would best be served by embracing this fundamental innovation, but we’re also focused on international markets, many of which are moving forward with strategies to become “crypto hubs.” We would like to see the US take a similar approach, but a regulation by enforcement approach in the US is instead leading to a disappointing trend for crypto development in the US.”

Excerpt from Coinbase’s blog post

Follow Us on Google News

Leave a Comment

Your email address will not be published. Required fields are marked *