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Is Coinbase Leaving the US? Exchange Launches Bermuda Arm

Daniela Kirova
Daniela Kirova
Daniela Kirova
Author:
Daniela Kirova
Writer
Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.
April 20th, 2023
  • This could mark the beginning of the end for the crypto exchange in the US
  • Bermuda is a tax haven for corporations with zero profit tax

Coinbase, the largest crypto exchange in the US, has been issued a license to operate in Bermuda and is likely to set up a derivatives exchange there as early as next week, CoinTelegraph reported.

License to operate issued by local monetary authority

On April 19, Coinbase wrote on its blog that it had received a regulatory Class F License from the local financial watchdog, the Bermuda Monetary Authority, stating:

The license, which was issued under the Digital Asset Business Act, makes it possible for the leading exchange to perform a range of activities, including issuing and selling tokens. It also allows Coinbase to operate as a provider of derivatives exchange services and a digital asset exchange.

Forbes corroborated the news that the exchange could introduce derivatives services as soon as next week.

The end for Coinbase in the US?

Crypto industry insiders reported that the latest development could mark the beginning of the end for the crypto exchange in the US.

On April 18, Coinbase CEO Brian Armstrong told CNBC his platform was getting ready for a serious legal battle with the SEC after the watchdog accused them of violating securities laws. At an industry event in London, Armstrong disclosed that the absence of regulatory clarity in the US could drive the exchange out of the country.

In November 2022, Armstrong voiced a similar stance, claiming that the SEC was driving investors and trading activity overseas by failing to provide clarity.

Zero corporate tax owed in Bermuda

Bermuda is a tax haven for corporations with its zero profit tax. While companies operating there do owe payroll tax, profit remains untaxed, making the archipelago an appealing destination for firms looking to cut costs.

Contributors

Daniela Kirova
Writer
Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.