Coinbase Scores Big Win: Receives License to Operate in Bermuda’s Crypto Market

Coinbase Receives License from Bermuda Monetary Authority for International Expansion

Coinbase, the US-based cryptocurrency exchange, has received a Class F license from the Bermuda Monetary Authority (BMA) to operate as a digital asset exchange in Bermuda. The announcement was made on Wednesday in a blog post, where the company stated that it has obtained the license as part of its international expansion efforts. This move comes after Coinbase CEO, Brian Armstrong, indicated that the exchange would consider moving out of the US if clear crypto regulation isn’t enacted. In March, the exchange was reported to have been in discussions with institutional clients about setting up a crypto-trading platform overseas.

While the news of Coinbase’s expansion is exciting, it is not yet clear what services the company will offer in Bermuda. A spokesperson for the exchange told CoinDesk, “nothing to announce today regarding our future plans to offer services through this license.” However, the exchange is expected to offer its full range of services, including trading, custody, and wallet services.

Coinbase’s expansion drive is part of its plan to increase its global presence. The exchange has been focusing on doubling down its investments in the Canadian market. As part of this effort, the company recently hired Lucas Matheson as country director and signed a Pre-Registration Undertaking (PRU), which is considered a stepping stone on the way to becoming a registered exchange in Canada.

The move to Bermuda is significant for Coinbase as the territory has become a hub for cryptocurrency and blockchain companies. Bermuda has been actively working to create a regulatory framework for digital assets, and the BMA has been at the forefront of this effort. The Class F license is a high-bar regulatory jurisdiction, and Coinbase’s successful attainment of the license is a testament to the company’s commitment to compliance and regulation.

Coinbase is not the only company looking to expand its presence in Bermuda. In May, Binance, the world’s largest cryptocurrency exchange by trading volume, announced that it would be setting up an office in Bermuda. The move was seen as a strategic one, as Binance was looking to take advantage of the territory’s regulatory framework and its proximity to the US.

Overall, Coinbase’s move to Bermuda is a positive development for the company and the cryptocurrency industry as a whole. The move shows that the company is committed to expanding its global presence and is willing to work with regulators to ensure compliance. It also highlights the importance of regulatory clarity in the cryptocurrency industry, as companies are looking for jurisdictions that have clear guidelines and regulations in place.

Martin Reid

Martin Reid

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