Coinbase to offer crypto futures to US customers

The National Futures Association has granted approval to Coinbase for operating the regulated FCM, which is Future Commission Merchant. The offering will be available to the residents of the US based on their eligibility. The approval has been granted to Coinbase Financial Markets, making this a critical milestone.

It further reaffirms the commitment of the venture to operate a business only if it is considered regulated and compliant by the authorities of the relevant region, the US, in this instance. Another goal is to protect customers from any kind of mishap that may happen if its services and products are not covered by the regulators.

Approval from the NFA makes Coinbase the first crypto-native leader to offer traditional spot crypto trading directly to customers. It will continue to provide leverage and regulated crypto futures alongside the latest entries. The solution can be accessed by verified customers on the integrated trading solution by Coinbase.

The development will help Coinbase exchange to onboard a larger number of users to boost their participation in the crypto economy. The application for the product was first submitted to the FCM in September 2021. 

The request was to approve their FCM so that the crypto venture could ensure compliance with the regulatory norms. Coinbase went public believing that the US market would best embrace the innovation and bring forward the regulatory standard that is of the best nature for customer protection.

Coinbase has called this a watershed moment, adding that the approval will help bring regulated crypto products to customers. The venture is now on the path to continue building products and services that are safe for customers. Receiving such authorizations aligns with the mission of leveraging the potential of crypto to update the financial system so that more people have opportunities and economic freedom at their disposal.

The approval market can be accessed by eligible customers via Coinbase Financial Markets. It will run along with the spot market. Importantly, more US citizens have a chance to participate in the crypto-economy. Coinbase operating crypto derivatives will make sure that the US remains at the center of technical innovation as the adoption of DeFi gains momentum.

Moving forward, Coinbase has plans in the pipeline to make available a guide. It will have all the necessary pieces of information to help customers understand how they can become eligible to avail of products and services. Those who are eligible will gain an understanding of how they can go about participating in the process.

FCM approval has enabled Coinbase to bring transparency to the market while securing its operations. It is almost 75% for the crypto derivative market, contributing to crypto trading volume. Investors use derivatives to mitigate the risk factor or to minimize the loss that would otherwise have been immense.

Approval from FCM follows Coinbase acquiring FairX in 2022, which is now identified as Coinbase Derivative Exchange.