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Coinbase receives NFA authorization to provide Bitcoin and Ether futures in the United States.
Cryptocurrency exchange Coinbase has received authorization from the National Futures Association (NFA) to provide investments in crypto futures to qualified customers in the United States.
In a statement released on Aug. 16, Coinbase announced that it is now officially permitted to function as a Futures Commission Merchant (FCM) platform.
This approval allows Coinbase to offer Bitcoin (BTC) and Ether (ETH) futures contracts via its Commodity Futures Trading Commission (CFTC)-regulated derivatives exchange.
“This represents a significant milestone that reinforces our dedication to maintaining a regulated and compliant operation, aiming to be the most reliable and secure crypto-native platform for our clients,” Coinbase stated in the announcement.
As noted on Coinbase’s cryptocurrency futures webpage, the new futures trading service will not be available immediately in the United States.
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“U.S. regulated futures trading is on the way. Sign up to join the waitlist and gain early access,” the company mentioned on the site.
In the announcement, Coinbase asserted that the global crypto derivatives market constitutes 75% of the total crypto trading volume worldwide. “The capability to trade on margin provides customers with leverage and access to the crypto market with a lower initial investment compared to traditional spot trading,” the firm added.
Related: Legal scholars file amicus brief in support of Coinbase
As reported earlier, Coinbase officially revealed plans to initiate BTC and ETH futures trading for institutional investors in early June. Additionally, Coinbase had previously intended to establish a derivatives exchange in Bermuda, marking a step in its global expansion efforts.
The announcement arrives amid Coinbase’s ongoing legal dispute with the U.S. Securities and Exchange Commission. The regulator initiated a lawsuit against Coinbase in early June, claiming that the exchange breached local securities laws by offering unregistered securities.
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