• Coinbase has launched a new derivatives exchange in Bermuda as it looks to test the international waters.
• The company had been publicly feuding with the U.S. Securities and Exchange Commission (SEC) over a range of issues, including blocked services such as crypto lending program called Earn and a “staking-as-a-service” platform.
• Despite being asked numerous times to “register” with the SEC as an official securities exchange, Coinbase has instead fought a definitional battle over which crypto tokens do and do not count as securities.
Coinbase Grew Quickly by Working With U.S. Regulators
Coinbase is the largest U.S. crypto exchange that went public in 2021 after completing diligence process with the SEC, leading many to think that the agency had endorsed its business model.
Will It Expand Even More by Disregarding the SEC?
However, under Gary Gensler’s regime as chairman of the SEC, Coinbase has found itself at an impasse with the regulator due to blocked services such as crypto lending program called Earn and a “staking-as-a-service” platform that would offer U.S. users dividend-like yield payments. The watchdog agency also asked Coinbase numerous times to “register” with them as an official securities exchange but Coinbase chose to fight a definitional battle over which crypto tokens do and do not count as securities instead (the exchange maintains it does not list “investment contracts”).
Launching Derivatives Exchange in Bermuda
To expand its business further, Coinbase recently launched a new derivatives exchange in Bermuda – an act showing that they are serious about going overseas due to increasingly nonviable US crypto regulations – after receiving its license last month to operate there.
Coinbase CEO Brian Armstrong
Founded by CEO Brian Armstrong in 2012, Coinbase has grown to become one of the biggest crypto exchanges by trading volume largely thanks for working closely with US regulators prior their IPO launch in 2021 .
It remains unclear whether or not disregarding US regulations will help Coinbase grow even more internationally or if they will still need approval from major agencies like SEC to facilitate their growth plans post IPO launch