Coinbase’s international branch has secured regulatory approval to roll out bitcoin perpetual futures for markets outside the United States.
Coinbase, the prominent cryptocurrency exchange, is set to unveil perpetual futures trading for bitcoin (BTC) to its retail traders. This financial offering comes on the heels of the Bermuda Monetary Authority (BMA) granting the exchange a “Class F” license. The newly announced perpetual futures service is slated to be available “in the coming weeks” for clients outside the United States via Coinbase International Exchange, the global arm of the American exchange.
As per Coinbase Advanced’s webpage, the trading of bitcoin and cryptocurrency perpetual futures contracts, already a feature within the U.S., will soon be accessible in other “selected jurisdictions.” A perpetual futures contract is a derivative that allows investors to speculate on an asset’s future price without actually owning it. Unlike traditional futures, these contracts don’t have a fixed expiration date but instead roll over at regular intervals, such as every 8 hours.
What is a Class F License?
A “Class F” license is a certification granted by the Bermuda Monetary Authority, the jurisdiction from which Coinbase oversees its international operations.
This license, awarded in compliance with the “DABA” or the rules governing digital asset business activities, is a comprehensive permit to operate “without being bound to any specific timeframe.” The BMA also offers another type of license, the “Class M,” which comes with more restrictions and is valid for a set period, among other limitations.
Typically, once the duration of a ‘Class M’ license concludes, “the licensee is expected to either apply for a ‘Class F’ license or cease operations.”
However, with Coinbase in possession of a full license, it stands in an optimal regulatory position with the Bermuda Monetary Authority.