​Coinbase and Gemini launch crypto exchanges for clients outside the US

What’s new? In early May, two US crypto exchanges announced the launch of their international divisions at once. Coinbase International Exchange will allow institutional clients to trade perpetual futures, while Gemini Foundation is also designed to trade derivatives, but is also available to retail investors. Both platforms will serve users from different jurisdictions, excluding US residents.

Coinbase’s announcement

Gemini’s announcement

What else is known? Gemini Foundation offers non-US clients trading perpetual BTC contracts denominated in Gemini (GUSD) stablecoins with leverage up to 100x. It is planned to launch an ETH/GUSD perpetual contract in the coming weeks. Available jurisdictions include Singapore, Hong Kong, India, Argentina, Bahamas, Bermuda, British Virgin Islands, Bhutan, Brazil, Cayman Islands, Chile, Egypt, El Salvador, Guernsey, Israel, Jersey, New Zealand, Nigeria, Panama, Peru, Philippines, Saint Lucia, Saint Vincent & Grenadine, South Africa, Switzerland, Thailand, Turkey, Uruguay, and Vietnam. The platform is not available for customers from the US, UK, and EU countries.

Coinbase said it is working hard to update its financial system, creating robust products that expand the use and adoption of cryptocurrencies. The exchange’s representatives believe that cryptocurrencies and blockchain technology can increase economic freedom and opportunities around the world. The decision to launch the international exchange was made after the Bermuda regulator obtained a license. The new platform is designed for institutional clients located outside the US. The exchange offers perpetual BTC and ETH contracts with a maximum leverage of 5x.

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The launch of Gemini and Coinbase’s international divisions comes amid pressure on the exchanges from US regulators. On April 24, Coinbase filed a lawsuit against the Securities and Exchange Commission (SEC), demanding regulations for the crypto industry. The SEC had previously notified the exchange of possible violations of securities laws relating to some of its products.

In January, the SEC accused Gemini and its partner, crypto broker Genesis, of unregistered offerings and sales of securities to retail investors through Gemini Earn, a crypto lending program. The companies reportedly raised billions of dollars worth of crypto assets from hundreds of thousands of investors this way.