Crypto Derivatives Firm Bitnomial Receives CFTC Approval
Crypto derivatives firm Bitnomial has been granted approval by the Commodity Futures Trading Commission (CFTC) to register as a derivatives clearing organization in the United States. This means that Bitnomial can now settle margined futures and options contracts.
First Crypto-Native Exchange with Full Range of Licenses
The approval, which was secured through a four-to-one vote at the CFTC’s December open meeting, establishes Bitnomial as the first crypto-native exchange in the U.S. to obtain a comprehensive range of licenses for derivatives exchange, clearinghouse, and brokerage.
Margined, Physically Delivered Digital Asset Derivatives
Bitnomial highlighted in a press release that it is the sole exchange in the U.S. offering margined, physically delivered digital asset derivatives. This means that customers can acquire actual ownership of digital assets on a leveraged basis, instead of relying on cash settlement.
Completing the Regulatory Framework
With the acquisition of the derivatives clearing organization (DCO) license, Bitnomial completes its regulatory framework, adding to its existing exchange (DCM) and brokerage (FCM) licenses.
Expanding Product Offering and Customer Base
Luke Hoersten, founder and CEO of Bitnomial, expressed his ambitions to establish a globally regulated derivative trading platform in the U.S. The company aims to transition from traditional U.S. dollar and Treasury margin collateral to digital assets. With the licensing process now complete, Bitnomial can focus on expanding its product offering and customer base.
“Now that the licensing process is complete, we can shift our focus to expanding Bitnomial’s product offering and customer base.”
Luke Hoersten, founder and CEO of Bitnomial
Positive Development for the Cryptocurrency Industry
The approval by the CFTC is viewed as a positive development for the cryptocurrency industry, which has faced recent challenges and scrutiny. Concerns about vertical integration and potential conflicts of interest have been raised by the White House and various regulators. Recent cases involving Binance and FTX have highlighted the need for increased regulation and compliance within the crypto sector.
Hot Take: Bitnomial Paves the Way for Crypto Derivatives in the U.S.
Bitnomial’s approval as a derivatives clearing organization marks a significant milestone for the crypto industry in the United States. By becoming the first crypto-native exchange to acquire a full range of licenses, Bitnomial is leading the way in offering margined, physically delivered digital asset derivatives to customers. This approval not only strengthens Bitnomial’s position but also signals a positive step towards increased regulation and compliance within the cryptocurrency space. As Bitnomial expands its product offering and customer base, it sets a precedent for other crypto exchanges to follow suit in obtaining necessary licenses to operate legally in the U.S.
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