Coinbase to launch perpetual futures trading worldwide

Coinbase International Exchange, which launched in May this year and offered crypto derivatives to institutional clients, has announced an expansion of the service to retail.

In an announcement on Thursday, September 28, Coinbase said the regulated platform had received approval to provide perpetual futures trading to retail customers. The service is available globally, the exchange noted.

The expansion continues…

Thrilled to announce that Coinbase International Exchange has secured regulatory approval from the Bermuda Monetary Authority (BMA) to enable perpetual futures for non-US retail customers.

— Coinbase 🛡️ (@coinbase) September 28, 2023

Perpetual futures for retail will go live in coming weeks

The approval was granted by the Bermuda Monetary Authority (BMA), which also gave Coinbase International Exchange a class F license. Following this milestone, the platform will extend its perpetual futures trading to non-US retail clients. The product is set to go live in coming weeks, with eligible customers getting access through Coinbase Advanced.

“Starting today, non-US retail traders will be able to check their eligibility for perpetual futures on Coinbase Advanced with trading to officially begin in the coming weeks,” Coinbase wrote.

According to the exchange, BMA’s approval of its product comes amid an increasingly tough regulatory environment for crypto exchanges, with many exiting various jurisdictions. It’s a scenario that leaves the market with very few “trusted players” upon whose security and transparency crypto traders rely.  

As such, regulatory approval is good from the exchange’s as well as users’ perspective. Among other things, it means the exchange has to adhere to established requirements around risk management, compliance and investor protections.

Also notable is the growth of the crypto derivatives market, globally accounting for approximately 75% of crypto trading volume. This, according to Coinbase, is an indicator of the strong demand traders have for derivatives. Demand for perpetual futures contracts at Coinbase International Exchange has therefore been on the rise, with Q2 seeing notional trading volume of more than $5.5 billion.