Two high profile cryptocurrency exchanges, Coinbase and Gemini, have both gone live with offshore cryptocurrency derivatives platforms. The platforms are not available to U.S.-based clients, and both have been accused by the U.S. regulator, the SEC, of trading unregistered securities. Coinbase’s approach is considerably more conservative.
Yesterday Gemini said that Gemini Foundation is now live and trading dollar-based perpetual futures for Bitcoin with up to 100 times leverage. According to the fine print, Gemini Foundation is governed by Singapore law, although Gemini has no Singapore licenses. Singapore does not have a licensing regime for crypto derivatives, but spot trading is a different matter. Notably, the futures are not available in Europe or the U.K.
Turning to Coinbase, it said it landed a license in Bermuda last month and today announced its Coinbase International Exchange is now live and supports perpetual futures for Bitcoin and Ethereum. By crypto standards, the leverage it initially offers of 5x is conservative compared to Gemini’s and Binance’s of up to 125x. It also is currently restricting access to institutional clients.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
