Coinbase Receives Class F License from Bermuda Monetary Authority

Coinbase Receives Class F License from Bermuda Monetary Authority

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Coinbase continues to spread its wings across the world, citing regulatory uncertainty in the US.

Coinbase, a major United States-based cryptocurrency exchange, has acquired a license allowing it to operate in Bermuda.

In an April 19th blog post, Coinbase announced that they had been granted a regulatory license from the Bermuda Monetary Authority, the country’s financial regulator.

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The Class F License under the Digital Asset Business Act allows Coinbase to engage in various activities, such as token sales and issuance. Moreover, the company can operate as both a digital asset derivatives exchange provider and a digital asset exchange.

According to an April 19th Forbes report, a source close to the company claims that Coinbase plans to launch a derivatives exchange in Bermuda in the coming week.

In its blog post, when commenting on why Bermuda was chosen “as one of <company’s> financial hubs,” the company highlighted the island’s regulatory environment, known for its “high levels of rigor, transparency, compliance, and cooperation.”

This development has led some in the crypto community to speculate that Coinbase may eventually shift its operations away from the United States, particularly after CEO Brian Armstrong expressed concerns about the lack of regulatory clarity in the country at a recent fintech event in London.

Before appearing at London’s fintech event, Coinbase CEO met with City Minister Andrew Griffith, revealing plans to help the UK become a successful Web3 hub.

Coinbase’s acquisition of a Bermuda license and the potential launch of an offshore exchange reflect the ongoing search for better regulatory environments within the crypto industry and may signal a growing trend of companies seeking friendlier jurisdictions for their operations.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

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