Coinbase, the largest cryptocurrency exchange in the USA, announced that it has received approval to offer futures services within the borders of the country. In the statement made by Coinbase, it was stated that platform users will recently have direct access to futures transactions through Coinbase Financial Markets. The company said that access to the CFTC-regulated crypto derivatives market will unlock significant growth and is essential for broader participation in the crypto economy. In the statement made by Coinbase on the subject, the following statements were used:
In September 2021, we applied to the NFA to register with an FCM. Our team has since worked with regulators to ensure we comply with all necessary regulations and that our FCM business model meets the CFTC’s customer protection requirements. Coinbase chose to be a public company in the US because we believe it will best serve the US by embracing the crypto economy and offering the regulatory framework with the highest standards in consumer protection.
Also addressing the issue of regulation for the cryptocurrency market, Coinbase believes it is a milestone to offer regulated crypto investment products to US citizens. In addition, regulatory clarity in the country is thought to expand the use of crypto for economic freedom and new opportunities. In this way, Coinbase aims to make a significant contribution to the sector by starting the derivatives product service regulated under the supervision of the CFTC and NFA, as well as spot crypto transactions for US customers. Coinbase began ventures last year to operate in the derivatives market and acquired FairX, a CFTC-regulated futures exchange. Coinbase stated at the end of its announcement that it will provide detailed information on how verified US users will receive the futures service in the coming months.
According to the data, it is emphasized that the share of the global crypto derivatives market in the total crypto trading volume is 75%, and this area is thought to have a critical importance in the development of the sector. Derivative transactions allow investors to trade higher amounts using less collateral, which offers higher earnings opportunity with the risk of capital loss.