In a bid to further strengthen its presence in the derivatives market, leading crypto exchange, Coinbase has launched perpetuals trading for customers outside the U.S. jurisdiction. According to its Wednesday blog post, the crypto platform will roll out the offering through its Advanced platform from today, October 18, 2023.
Coinbase plans to kick-start the perpetuals trading service with four contracts. These include Bitcoin, Litecoin, Ether, and XRP. Don’t forget that perpetuals are futures without an expiry date. In recent times, this kind of futures has witnessed massive adoption, becoming a popular tool among traders of crypto derivatives.
Amid the regulatory uncertainty in the U.S., Coinbase decided that the trading service would only be available to users outside the jurisdiction. This simply means users from the United States will not be able to explore the prospects associated with the offer. Likewise, those outside the U.S., will also have to meet up with certain eligibility requirements.
Perpetuals trading is available for non-U.S. retail customers alone – Coinbase
According to Coinbase, the offering is only available for retail customers who fulfill certain assessment checks. Once they satisfy the criteria, they will be able to tap into the perpetual futures contracts provided through the Advanced platform. The Advanced platform enables users to trade spot markets and derivatives together. This simply means users won’t have to go out of the platform to execute any of the two as they can be traded in one interface on the Advanced platform.
More so, this platform provides a maximum leverage of 5x for Bitcoin, Ethereum, and Litecoin contracts. As for XRP contracts, they come with a maximum leverage of 3x. In the future, Coinbase will add more contracts for other crypto assets.
Meanwhile, Coinbase is still in a legal battle with the United States Securities and Exchange Commission (SEC). Recall that the regulator filed a complaint against the exchange in June, insisting that it operated an unregistered exchange. According to SEC, the activities of Coinbase violates the federal securities laws in the country.