Coinbase Claims First Australian Crypto Derivatives License — KuCoin Disagrees

Coinbase has secured an Australian Financial Services License (AFSL) with retail derivatives authorization. The exchange claims to be the first crypto platform in Australia to achieve this.

However, KuCoin responded with a different perspective.

Coinbase Expands Down Under

According to Coinbase, crypto and equity perpetuals will launch first. Options are planned to follow. The AFSL with retail derivatives authorization allows the exchange to offer leveraged products to retail users, not just institutional clients.

This development expands Coinbase’s addressable market in Australia significantly, following the exchange’s recent Office of the Comptroller of the Currency (OCC) approval for a federal trust company charter in the US. Retail derivatives trading typically generates higher volume and fees than spot trading alone.

Fun Fact: Australia has over 5 million crypto holders, representing one of the highest adoption rates per capita globally.

KuCoin Responds

Shortly after Coinbase’s announcement, KuCoin Australia posted a reply:

“Hey Coinbase, just a reminder that we have been offering regulated retail perps under an AFSL in AU since last October. Welcome to the table though.”

KuCoin’s response suggests Coinbase may not be the first to hold an AFSL with retail derivatives authorization. According to KuCoin, the exchange has offered regulated retail perps in Australia since October 2025.

Why Australia Matters

Australia represents a notable market for crypto exchanges. The country has an active retail trading community and established regulatory frameworks. An AFSL provides legitimacy and allows exchanges to offer products that would otherwise face restrictions.

Derivatives are typically a high-margin business for exchanges. Retail access increases trading volume and revenue potential.

The exchange between Coinbase and KuCoin reflects growing competition in the Australian market. As regulatory clarity improves, more exchanges may seek similar licenses.

For Australian traders, the developments mean more options for regulated crypto derivatives.

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