Coinbase, an American crypto exchange platform, has announced its new offshore trading policies in Bermuda after obtaining a license from the Bermuda Monetary Authority, the financial regulatory authority.
According to sources, the company will soon launch an offshore derivatives scheme in Bermuda by next week. The CEO, Brian Armstrong, was also seen hinting towards Coinbase exiting the US crypto market soon with its new operations and expansions.
You might wonder why Bermuda, of all places, and here is the answer. Bermuda is one of the first territories to set up comprehensive laws on the exchange of digital assets and operations of the digital assets market.
Its policies were characteristic of high-level transparency, rigour, and legal compliance. In short, the island managed to erase the otherwise grey areas in the digital assets exchange and outline operations with clear and comprehensive guidelines, leaving no room for confusion.
Following such comprehensive policies, Coibase received an F-class license offered by the Digital Asset Business Act. As a result, Coinbase can now offer digital asset exchange services on the offshore island, along with sales and issuance of tokens.
Headquartered in the US, Coinbase mostly centred its crypto exchange activities in the country.
However, it seems the company is rethinking its operations in the country, owing to the lack of enough comprehensive crypto policies and regulations.
With continuous contention between the U.S. Securities and Exchange Commission (SEC) and the Republicans, crypto policy-making faced a tremendous backlash.
The lack of uniform crypto regulations has led to several companies suffering from legal charges, including Binance and Bittrex, and the chances of Coinbase fighting a legal battle soon are not surprising.
According to CEO Brian Armstrong, the Bermuda Monetary Authority comprises world-class financial experts committed to developing a strong crypto economy on the offshore island.
No wonder, its policy regulations are sure to work in favour of the company along with the crypto investors, indicating why Coinbase might quit the US soon.
The US has been routinely criticized for its cryptocurrency regulations and the lack of transparency in them. However, the lack of comprehensive crypto regulatory policies is not specific to the country alone.
Instead, very few countries like Bermuda have clear, transparent, and legally compliant crypto regulations. The estimated exit of Coinbase from the US and its expansion into Bermuda is an eye-opener for the country and many others.
While the Bermuda license will see a growth of crypto token sales and issuance through Coinbase, the crypto market will also witness an overall change in the nature of crypto policies in the US, as well as in other countries.
While the US has been strictly focusing o eliminating fraudulent cryptocurrency activities, its policy to merge trading platforms with the National Securities Exchange (NSE) might be redundant.
However, the long-lasting debate between the SEC and the Republicans could finally conclude with the country losing a dominant crypto exchange platform. The crypto market is also expected to witness greater and more rigid crypto regulations and offer safer transactions, bringing in new hopes for crypto investors.