Coinbase has actively tried to be on the right side of the law by interacting with lawmakers and regulators. It tends to pass its new features through the proper regulatory channels to ensure that its activities do not contradict the law. Recently, Coinbase announced that it is in the process of gaining the necessary approval to offer services that come with being a Registered Futures Trader (FCM) with the National Futures Association (NFA).
Coinbase made this known through their Twitter account, “Today, Coinbase applied 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 submitted the application a day before making the aforementioned tweet, and it is expected that its approval will be granted.
Before it can offer futures and derivatives, it has to undergo a long process once it is approved by FCM. It will have to liaise with regulatory bodies like the Commodity Futures Trading Commission.
At the moment, the crypto futures and derivatives market is a lucrative one that can’t be obtainable on Coinbase but can be seen elsewhere. Big exchanges have been able to boycott the stringent process that the US government and regulatory bodies have put in place by only offering their future services to non-US residents.
Exchanges like Binance, Kraken, and OKEx offer these services but have tailor-made them solely for their users that are not based in the US to ensure that they do not break any laws.
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