Coinbase and Gemini Launch Offshore Crypto Derivatives Exchanges Amid Regulatory Tensions

Coinbase has opened a derivatives exchange in Bermuda, called Coinbase International Exchange, which will initially allow traders to bet on the price of bitcoin and ether via perpetual futures contracts with up to five times leverage. All trades will settle in the stablecoin USDC. The move comes as Coinbase faces regulatory challenges in the US and other US-based crypto companies are also looking offshore. Coinbase said it is committed to the US but would like to see the country take a similar approach to other countries in terms of responsible crypto-forward regulatory frameworks.