Regulators and law enforcement agencies in the U.S. have stepped up actions against crypto firms this year, following a series of industry blowups in 2022. In March the U.S. Securities and Exchange Commission (SEC) threatened to sue Coinbase over certain products. Coinbase has obtained a licence from the Bermuda Monetary Authority, which allows it to operate as a digital asset business there, it said in a blog post on Wednesday.
The exchange is also in discussion with financial regulators in Abu Dhabi about a potential licence, the blog said.
Coinbase is planning to launch a crypto derivatives exchange in Bermuda as soon as next week, Fortune reported on Wednesday, citing a person close to the company. Coinbase did not immediately respond to a Reuters request for comment. Bermuda's regulator did not immediately respond to a request for comment sent outside business hours.
Crypto derivatives trading is big business. In March, derivatives trading volumes on major exchanges hit some $2.8 trillion, according to London researcher CCData, versus spot trading volumes of just over $1 trillion.
U.S. SEC Chair Gary Gensler told lawmakers on Tuesday that he had "never seen a field that's so non-complying with laws". Crypto firms say they need clarity about regulations, but Gensler has said that crypto markets "suffer from a lack of regulatory compliance, not a lack of regulatory clarity". (Reporting by Elizabeth Howcroft; additional reporting by Tom Wilson)
