- U.S.-based Crypto exchange Coinbase receives a license to operate in Bermuda.
- Reports claim that the company was looking into ways to introduce an offshore platform.
- The crypto firm received a Class F license from the Bermuda Monetary Authority (BMA)
On April 19, Coinbase, the leading cryptocurrency exchange in the United States, announced in its blog that it had been granted a license by the Bermuda Monetary Authority (BMA) to operate in Bermuda. The move is part of Coinbase’s offshore strategy to expand its presence in other countries.
The BMA granted Coinbase Bermuda Ltd. a Class F License under the Digital Asset Business Act (BMA).
Bermuda was one of the first financial hubs in 2018 to adopt complete regulation of digital assets. The country’s regulatory framework is well-known for its high standards of rigor, openness, compliance, and cooperation.
Coinbase gave reasons why it chose Bermuda and said:
“Bermuda was chosen as one of our international hubs as the BMA is a highly respected and experienced financial regulator led by a world-class executive team and board of directors.”
The Brian Armstrong-led crypto exchange also said that it chose Bermuda as one of its foreign hubs because of the BMA’s reputation as an expert financial regulator, run by an executive team and board of directors of the highest caliber. The BMA also participates in several international organizations and keeps close ties to other regulatory bodies worldwide.
“The BMA is also a member of several international organizations and maintains close relationships with other regulatory agencies around the world.”
The Scope Of The Full “F” Licence
The Full “F” Licence is Bermuda’s highest license category for digital asset businesses. To obtain this license, a company must undergo a rigorous application process and meet several requirements in the DABA. The license allows Coinbase to conduct a wide range of digital asset business activities, including providing custody services, executing orders on behalf of clients, and dealing in digital assets as a principal.
The Full “F” Licence is a mark of trust and credibility in the crypto industry. It demonstrates that Coinbase has passed a strict regulatory examination and is committed to maintaining high standards of compliance and customer protection.
The announcement comes two days after Coinbase CEO Brian Armstrong said the American exchange might think about moving abroad if clear crypto regulations weren’t passed. The exchange reportedly negotiated with institutional clients in March about establishing a cryptocurrency trading platform abroad.
Coinbase’s offshore strategy
Coinbase’s move to Bermuda is part of a larger offshore strategy the company has been pursuing in recent years. In addition to Bermuda, Coinbase has expanded its operations to other countries, including the United Kingdom and Singapore.
By expanding its operations offshore, Coinbase can operate in countries with more favorable regulatory environments while continuing to provide its services to customers in the United States. This allows Coinbase to offer new products and services that it may not be able to provide in the United States due to its strict regulatory environment.
