Traveling overseas… but it’s not a summer vacay. Yesterday, Coinbase launched an international exchange in Bermuda while New York-based (and Winklevoss twin-founded) exchange Gemini announced a derivatives platform anchored in Singapore. The expanded footprints will give the two crypto companies access to more flexible regulatory environments and allow them to serve up new products to new customers:
Coin "big money" base: Coinbase International Exchange says it’ll offer perpetual futures (think: no expiration) to non-US institutional investors only.
Gemi-no Brits allowed: Gemini Foundation will sling crypto derivatives to both retail and institutional customers in 30 countries — excluding the EU and UK.
When things get awkward at home… Coinbase has implied and Gemini has said outright that what they view as messy legal guidance from US regulators played a role in the decision to pack their business bags. Last week Coinbase sued the SEC to try to force the regulator to respond to its 2022 petition seeking crypto-specific rules. Meanwhile, the commission is considering suing Coinbase. It also accused Gemini of selling unregistered securities through its (now shuttered) lending program, Gemini Earn. SEC Chairman Gensler said his agency is just enforcing the existing securities rules.
The grass looks greener even when it's overgrown… Coinbase and Gemini are just the latest crypto cos to go international as US regulators crack down. Last month Kraken, another US-based exchange, secured a license to operate in Ireland (and Bittrex, which was once the largest US exchange, ditched America altogether). But wherever expanding US crypto companies settle, they risk finding the green grass thoroughly trampled on by already dominant international players like Binance.