A renowned cryptocurrency exchange, Coinbase, has finally received approval from the National Futures Association (NFA) to operate as a Futures Commission Merchant (FCM) in the United States nearly after two years of applying.
On August 16, Coinbase released an announcement on its website that it has received official approval to lead a Futures Commission Merchant (FCM) platform.
The National Futures Association (NFA) is a self-regulatory organization that operates under the oversight of the Commodity Futures Trading Commission (CFTC), which is a federal derivatives regulator in the U.S.
Crypto futures are agreements between users and Coinbase to buy or sell a certain amount of cryptocurrency at a specific price on a certain date in the future.
Coinbase said in a statement, “In September of 2021, we filed an application with the NFA to register an FCM. Our team has worked with regulators since then to ensure we will comply with all the necessary regulations and that our FCM’s business model meets the CFTC’s customer protection requirements.”
Coinbase has developed a brilliant liquidity pool with $4.7 billion worth of BTC, and $2.0 billion worth of ETH traded in value thus far in 2023. This shows that a lot of people are interested in trading these contracts on this exchange.
Coinbase is now the first platform in the U.S. where you can not only buy and sell cryptocurrencies at their current prices but also make more complicated trades where you predict future prices and use borrowed money, all under-regulated rules to keep things safe.
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