Crypto exchange Coinbase Global (NASDAQ:COIN) has secured a license to operate in Bermuda, expanding its presence beyond the U.S. as part of its 8-week international expansion drive. It has received a Class F License under the Digital Asset Business Act from the Bermuda Monetary Authority (BMA).
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Overseas Expansion
The company said that it chose Bermuda as one of its international hubs as the BMA is a “highly respected and experienced financial regulator.” It is also in discussion with the Financial Services Regulatory Authority in Abu Dhabi Global Market (ADGM) for a potential license to operate a regulated exchange. In March, the company announced its collaboration with Standard Chartered to offer local bank transfers to customers in Singapore.
While Coinbase did not provide any details on what services it will provide in Bermuda, Fortune reported that the company intends to launch a crypto derivatives exchange as soon as next week.
Regulators in the U.S. have stepped up their efforts to monitor crypto firms and ensure that they comply with rules to avoid disasters like FTX. Last month, the U.S. Securities and Exchange Commission (SEC) issued Coinbase a Wells Notice, warning the crypto exchange of potential violations of U.S. securities law.
Earlier this week, Coinbase CEO Brian Armstrong said that crypto firms will build their presence in “offshore havens” if key markets like U.S. and U.K. do not provide clarity about legislation and regulation.
However, SEC Chair Gary Gensler contends that “crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity.” Gensler’s statement was part of a press release providing details on the SEC’s charges against crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency.
Is Coinbase a Buy or Sell?
Wall Street is sidelined on Coinbase stock, with a Hold consensus rating based on seven Buys, seven Holds, and five Sells. The average price target of $65.93 suggests 9% upside. Shares have jumped 71% year-to-date.
