- Coinbase applied for approval almost two years ago.
- COIN has been struggling to trade above the $80 price level for a day.
Cryptocurrency exchange Coinbase [COIN] has received approval from the National Futures Association (NFA) to operate a Futures Commission Merchant (FCM), the exchange announced Aug. 16.
The NFA is a self-regulatory organization designated by the Commodity Futures Trading Commission (CFTC), the US futures regulator.
Coinbase can now offer crypto futures to eligible customers in the United States. According to the press release, it is the first crypto exchange in the country to offer regulated crypto futures in addition to traditional spot trading.
The exchange announced that its customers will soon be able to access crypto futures directly through Coinbase Financial Markets.
Coinbase applied to register as an FCM with the NFA in September 2021. After almost two years of waiting, it finally got the approval.
With institutional investors in mind, Coinbase Derivatives Exchange has launched its new Bitcoin [BTC] and Ethereum [ETC] Futures contracts in June. The derivatives exchange had launched its “Nano” Bitcoin and Ethereum contracts for advanced derivatives products in June 2022.
The global crypto derivatives market accounts for about 75% of the world crypto trading volume, the press release states.
Greg Tusar, Head of Institutional Product at Coinbase, said:
“Coinbase chose to become a US public company because we believe the US would be best served by adopting the crypto economy and would provide the regulatory framework with the highest standards of consumer protection.”
Regulatory scrutiny, declining revenue – a tough year for Coinbase so far
In June, the U.S. Securities and Exchange Commission (SEC) sued Coinbase for allegedly operating as an unregistered exchange, broker, and clearinghouse. The exchange later filed a motion to dismiss the regulator’s lawsuit. It has been claimed that the SEC’s approach differs significantly from the existing legal framework.
Earlier this month, Coinbase released its second-quarter earnings report. The company reported total revenue of $708 million, down 8% sequentially. The drop in transaction earnings has been attributed to “multi-year lows in crypto volatility.”
COIN has been struggling to trade above the $80 level for a day. Its price has continued to drop.
Source: COIN, Nasdaq
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