Coinbase Wins Approval To Offer Bitcoin, Ether Futures
Exchanging cryptocurrencies The National Futures Association (NFA) has granted Coinbase permission to make investments in cryptocurrency futures available to U.S. consumers who qualify.
On August 16, Coinbase announced that it has received official authorization to run a platform for futures commission merchants (FCM).
With this clearance, Coinbase is now able to launch Bitcoin futures contracts on its derivatives exchange, which is under the control of the Commodity Futures Trading Commission (CFTC).
Coinbase has announced its commitment to operating a regulated and compliant business, aiming to be the most trusted and secure crypto-native platform for its customers.
The new futures trading service will not be available in the United States. Coinbase claims that the global crypto derivatives market accounts for 75% of crypto trading volume worldwide. Margin trading gives users access to the cryptocurrency market and leverage with a smaller initial commitment than typical spot trading. Coinbase plans to launch BTC and ETH futures trading for institutional investors in early June and a derivatives exchange in Bermuda. This comes amid Coinbase’s ongoing legal battle with the U.S. Securities and Exchange Commission, which filed a lawsuit against the exchange in June, alleging it violated local securities laws by selling unregistered securities.
(With inputs from Shikha Singh)
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