Coinbase has obtained a license to operate in Bermuda, according to a blog post from the company on April 19.
Coinbase receives Bermuda license
Coinbase said that it has received a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA).
The company noted that Bermuda was among the first countries to pass full digital asset regulation in 2018 and praised its “level of rigor, transparency, compliance, and cooperation.” The firm said that it chose to use the country as an international hub due to the BMA’s world-class leadership and involvement in global regulation.
Separate reports from Fortune suggest that Coinbase could launch its offshore derivatives exchange in Bermuda by the end of this month.
Coinbase’s latest blog post also detailed progress on its other expansions in Singapore, Brazil, Canada, the United Arab Emirates (UAE), and Europe.
Exchanges face regulatory challenges in U.S.
Earlier, Coinbase CEO Brian Amstrong said that his company could leave the U.S. to operate in the U.K. due to the former country’s regulatory challenges.
The company has faced various actions in the U.S. It received a Wells notice from the U.S. Securities and Exchange Commission (SEC) in March. The company also settled with the New York Department of Financial Services (NYDFS) on an unrelated issue in January and settled with the Commodity Futures Trading Commission (CFTC) in 2021.
Though Coinbase’s Bermuda license and other expansions do not constitute a full move elsewhere, nor do they address the above issues, Coinbase said it is taking a “go broad and go deep approach” to ensure that it can serve users globally.
Coinbase is not the only crypto company that is expanding globally. Kraken recently announced that it had obtained regulatory approval in Ireland, while Binance expanded to Sweden in January. Each exchange serves multiple countries as well.