Coinbase Secures Approval for Regulated Crypto Futures Trading in the US
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In a significant achievement, Coinbase Financial Markets, Inc. has obtained regulatory clearance from the National Futures Association (NFA), a self-regulatory entity designated by the CFTC. This endorsement empowers Coinbase to establish themselves as a Futures Commission Merchant (FCM), enabling eligible customers within the US to engage in crypto futures trading.
This accomplishment stands as a pivotal juncture, underscoring their unwavering dedication to conducting business under stringent regulations and compliance measures. Their foremost objective remains the provision of the most secure and trustworthy crypto-native solutions.
Pioneering the landscape, Coinbase Financial Markets will usher in an era of distinction as the premiere crypto-native leader, offering access to regulated, leveraged, and cash-settled crypto futures—a groundbreaking stride in the realm of digital asset trading.
Fostering Confidence Through Regulation and Transparency: A New Era with Coinbase Financial Markets
In the dynamic cryptocurrency realm, regulation and transparency serve as foundational principles, fostering trust among individuals and institutions. The introduction of a CFTC-regulated crypto derivatives market becomes a crucial catalyst, driving growth and broadening participation in the cryptoeconomy.
In September 2021, Coinbase Financial Markets embarked on a diligent journey, applying for NFA registration as a Futures Commission Merchant (FCM). Through collaborative efforts with regulators, the team meticulously ensured compliance, crafting an FCM model that aligns seamlessly with CFTC’s rigorous customer protection standards.
At this juncture, Coinbase Financial Markets pioneers regulated crypto derivatives in the US. Coinbase proactively collaborates with regulators for necessary authorizations to align with their mission of modernizing finance and boosting economic freedom.
Today, we proudly unveil approval granting eligible US customers access to meticulously regulated derivatives via Coinbase Financial Markets. Under CFTC and NFA oversight, this secure avenue amplifies cryptoeconomy access and safety.
This approval cements the US as an innovative digital leader. Acquiring FCM approval advances our mission to democratize secure derivatives markets. Coinbase Financial Markets is set to release comprehensive guidelines for navigating our futures offerings.
A Pivotal Milestone in the Evolution of Crypto Derivatives Trading
The global landscape of crypto derivatives trading stands as a keystone, encompassing nearly 75% of the entire crypto trading volume worldwide. This arena serves as a critical juncture for traders seeking to participate in the crypto market. The allure lies in the capacity to engage in trading with margin, granting customers a leveraged gateway to the crypto sphere with a reduced initial investment—albeit with an inherent risk of potential loss. Moreover, this avenue empowers investors to articulate both long and short positions, strategically employing derivatives to adeptly manage the risk associated with their foundational crypto assets.
An Acquisition That Underlines Commitment
This allure of derivative products was the driving force behind Coinbase Global, Inc.’s strategic move in 2022 to acquire FairX—a noteworthy achievement. This exchange, now known as the Coinbase Derivatives Exchange, holds the distinction of being regulated by the CFTC, embodying a stalwart commitment to adhering to industry regulations. Following this acquisition, the Coinbase Derivatives Exchange has triumphantly inaugurated nano Bitcoin and Ethereum futures contracts tailored to the retail investor’s needs. Building upon this success, the exchange expanded its horizons on June 5th by introducing amplified versions catering to the institutional market.
Unveiling Access and Empowering Collaborations
The Coinbase Derivatives Exchange extends its welcoming hand to an array of participants, including third-party brokers, FCMs, and market makers. With this inclusive approach, it has fostered a thriving pool of liquidity, evident in the substantial notional volumes traded so far in 2023—$4.7 billion in BTC futures and $2.0 billion in ETH futures.
A Commitment to Progress
The decision for Coinbase Global, Inc., to embrace the public sphere in the United States was grounded in a conviction that the US offered the ideal environment for the growth of the cryptoeconomy. This pivotal step aligns with the belief that the US regulatory framework boasts the utmost standards in safeguarding consumer interests, ensuring a safe and secure avenue for all participants.
In this dynamic evolution of crypto derivatives trading, Coinbase Global, Inc. stands at the forefront, driving change, fostering access, and embodying a commitment to elevate the cryptoeconomy into a realm of greater possibility and security.
