Coinbase Expands Internationally with New Trading Options

Coinbase Global Inc targets non-US market

Coinbase Global Inc, a leading American cryptocurrency exchange, is extending its reach to international customers. The expansion, which includes new spot trading options, reflects the company's strategic shift in response to the uncertain regulatory environment in the United States.

Spot Trading for International Users

Coinbase's new offering, named the "Coinbase International Exchange," is tailored for users outside the United States. This platform complies with global anti-money laundering (AML) and Know-Your-Customer (KYC) standards. According to Coinbase, the move addresses the reluctance of some asset issuers and crypto community members to engage with U.S.-based exchanges due to regulatory ambiguities.

Starting December 14, 2023, Coinbase introduces Bitcoin (BTC) and Ethereum (Ether) trading options paired with the USDC stablecoin. This initiative is the first step in a broader plan to incorporate additional cryptocurrencies over time. The company emphasizes its commitment to building liquidity and a strong foundation before diversifying its digital asset offerings.

Institutional Focus with Retail Plans

Initially, this product caters to institutional clients, but plans are underway to include retail customers. In the future, Coinbase aims to introduce enhanced trading features, enabling new strategies for capital efficiency.

The Coinbase International Exchange, launched in May, initially offered BTC and ETH perpetual futures to institutional clients. Following regulatory approval in September, the platform expanded to accommodate retail traders, offering both spot market participation and regulated perpetual futures contracts. However, UK customers are restricted from trading crypto derivatives.

Greg Tusar, head of institutional product at Coinbase, emphasizes the importance of having spot and derivatives trading concurrently. "They complement each other, fostering a deep and liquid market," Tusar explains. He describes the roadmap as "aggressive and very exciting."

Navigating U.S. Regulatory Complexities

Coinbase's international expansion is a strategic response to the United States' evolving regulatory landscape. The U.S. has yet to establish a comprehensive regulatory framework for digital assets. Recently, lawmakers have been working on legislation to regulate stablecoins and the broader crypto market. However, these developments are expected to progress slowly, with significant advancements not anticipated until 2024.

While Coinbase's international expansion marks a significant step in its growth, it also highlights the ongoing regulatory challenges in the U.S. crypto market. This development reflects a cautious yet strategic approach in an increasingly complex digital economy.