Coinbase CEO: Approximately 50% of contract trading volume comes from U.S. users accessing offshore products via VPN

robot
Abstract generation in progress
Mars Finance News, Coinbase CEO Brian Armstrong tweeted, "For years, cryptocurrency trading has been moving overseas because the U.S. lacks clear regulatory rules, and while perpetual contracts are popular among traders, they are banned in the U.S. Honestly, about half of the trading volume of perpetual contracts comes from U.S. users who use offshore products via VPNs, and KYC reviews are lenient. Other companies set up offshore entities to find ways to evade regulations. After dozens of visits to Washington, D.C., and more discussions with policy teams, we finally received approval to allow U.S. users to access truly global perpetual contracts."
Earlier reports indicate that the CFTC Market Participants Division issued an explanation letter and a no-action letter to registered futures commission merchant Coinbase Financial Markets (CFM), permitting it to offer crypto options and perpetual contracts listed on the affiliated offshore exchange Deribit FZE to U.S. users.
The letter confirms that the aforementioned perpetual contracts can be classified as offshore futures under CFTC Regulation 30.1.
Additionally, under certain conditions, the CFTC will not recommend enforcement action against CFM for transferring digital assets and stablecoins held by clients to its offshore brokerage affiliates for margin purposes, and the affiliate may exercise reuse rights over the aforementioned client assets.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pinned