Coinbase Receives NFA Approval for Crypto Futures Trading
Coinbase, a prominent cryptocurrency exchange, has been granted authorization by the National Futures Association (NFA) to offer cryptocurrency futures trading to eligible clients in the United States.
- Coinbase has received approval to function as a Futures Commission Merchant (FCM) platform.
- The exchange will introduce futures contracts for Bitcoin (BTC) and Ethereum (ETH).
- The offerings will be available through Coinbase’s Commodity Futures Trading Commission (CFTC), a regulated derivatives exchange.
- Coinbase aims to provide a secure entry point into the crypto industry for US customers and contribute to the growth of the digital innovation.
- Regulatory compliance and transparency are crucial for instilling confidence in individual customers and institutions.
Coinbase’s Focus on Crypto Derivatives Market and Regulatory Compliance
Coinbase emphasizes the importance of a CFTC-regulated crypto derivatives market for significant growth and broader participation in the crypto economy.
- 75% of the total crypto trading volume comes from the worldwide crypto derivatives market.
- Margin trading allows customers to enter the crypto market with less initial investment than traditional spot trading.
- Coinbase applied to the NFA to register as an FCM and ensured compliance with regulations.
- The decision to become a publicly-traded company in the US is driven by the robust regulatory framework and consumer safeguarding.
- Coinbase plans to share more details on how verified US customers can access their futures offering.
Coinbase’s Legal Battle and Future Plans
Although Coinbase has received NFA approval, it is currently facing a legal battle with the US Securities and Exchange Commission (SEC) for selling unregistered securities.
In the coming months, Coinbase plans to provide early access to US-regulated futures trading and share further information.
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