American cryptocurrency exchange platform Coinbase has revealed that it has applied to become a registered Futures Commission Merchants (FCM) with the US National Futures Association (NFA). The exchange platform announced via a tweet that said “Today, Coinbase filed an application with the NFA to register as an FCM – Futures Commission Merchant. This is the next step to broaden our offerings and offer futures and derivatives trading on our platforms. Goal: Further grow the crypto economy”. Coinbase made the registration under the registration under the name Coinbase Global Inc. and as of the time of this drafting, the registration was still pending on the National Futures Commission website.
After its registration with the NFA pulls through, Coinbase will have to proceed to register with the US derivatives market regulator – the Commodity Futures Trading Commission (CFTC).
After acquiring these licenses, Coinbase will be able to fully offer its futures products to its clients. Acquiring licenses like these would give crypto platforms that plan on tapping into the crypto derivatives market, like Coinbase, the shield they require from regulatory actions.
The application to be a part of the National Futures Association (NFA) comes after Coinbase’s executive Brian Armstrong tweeted that the US Securities and Exchange Commission (SEC) threatened to sue coin base if it continued with offering a USD coin (USDC) lending products that promised clients 4 percent APY.
By registering and imminently acquiring the necessary licenses, the exchange platform hopes to carry on its operations concerning futures and derivatives smoothly and free from regulatory kerfuffles.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam and as of March this year, it was the largest cryptocurrency exchange in the US by trade volume. The exchange platform went public on NASDAQ exchange via a direct listing on April 14th, 2021.
Coinbase’s registration to become an NFA merchant is expected to be approved soon.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
