Coinbase is about to rent office space in Bermuda and is scouting for staff.

The imminent build-up by a major exchange is the most promising noise in the local crypto space in some time and follows a number of years of ambitious plans and limited follow through.

Jeff Baron, the chief compliance officer of Coinbase Bermuda, said the company was looking at two possible locations and seeking to increase headcount.

“We are in the process of hiring Bermuda roles,” he said. “There will be a lot more to report as we build out.”

Mr Baron was also chief compliance officer at his last job, Bittrex Global, where he worked for almost three years.

The former senator once served as Minister of National Security.

“I bring local knowledge and local relationships,” he said.

Mr Baron said that the current human resources strategy involved adding about two more jobs, filling the positions locally.

“There’s a deep talent pool in Bermuda in terms of risk and compliance. There’s no need to look beyond our shores,” he said.

Coinbase is aggressively pushing overseas in its “Go Broad, Go Deep” strategy, in which the Delaware-incorporated, Nasdaq-listed crypto exchange will “accelerate operationalising” in countries with regulatory environments amenable to crypto.

In addition to Bermuda, the EU, Brazil, UAE, Switzerland, Singapore and Japan are on this list of target jurisdictions.

Coinbase has received two Class F Digital Asset Business licences from the Bermuda Monetary Authority, one granted in April and the other in September. The former allows for institutional trading of perpetual futures, while the latter allows for retail trading.

The company is in the midst of a battle with the US Securities and Exchange Commission over whether the regulator has jurisdiction over the company’s cryptocurrency activities in the US.

Trading on Coinbase International is strictly for non-US persons and Mr Baron is tasked with ensuring that the exchange’s clients have no connection with the United States that could bring the customer, and the entire exchange, within the reach of US securities regulators.

He said that the exchange had robust and dynamic know-your-customer procedures. Identity is checked thoroughly at account opening and then continually monitored to determine whether a person could be disqualified from participating on the platform due to a change in circumstances.

The exchange’s process includes keeping a watch on IP addresses to determine the location of traders.

“If there are any changes in the relationship, they may have to re-on-board with us,” Mr Baron said, using industry jargon for the customer sign-up and approval process.

Significantly, Coinbase International does not deal in cash, only crypto-to-crypto, so the local banking system will not be involved.

Coinbase insists that it is committed to the US and has no intention of leaving the country despite its dust-up with the SEC and comments by CEO Brian Armstrong earlier this year that abandoning the US is a possibility if regulatory clarity is not achieved.

Mr Baron emphasised that Coinbase International is a serious operation not inclined to compromise on governance in the way that other crypto enterprises have and that the company would avoid the beanbag-chair culture, chaos and bluster of FTX and some other crypto enterprises.

Coinbase international has, he said: “a meaningful org chart with fit-and-proper persons”.

He also noted the strengths of Bermuda as a jurisdiction, especially in terms of the regulators and their professionalism.

"There is regulatory clarity. Other jurisdictions are still grappling with it. Legislation here is very sound and clear,“ he noted.