Coinbase Rewrites Rules – Dual Crypto Powerplay
The exchange recently got the green light from the National Futures Association (NFA), a self-regulatory organization overseen by the CFTC. This approval lets the platform offer an exciting new service to everyday customers in the US. What’s interesting is that this move makes it the first platform of its kind, dealing in cryptocurrencies, to provide both regular crypto trading and leveraged crypto futures directly. This achievement comes after a thorough two-year application process.
In a blog post, Coinbase’s VP for institutional products, Greg Tusar, said, “This is a big moment for us, as we can now offer regulated crypto services to our customers in the US.”
This regulatory approval is a significant win for Coinbase, especially considering its recent public tussle with the SEC. Earlier this year, the crypto exchange settled a case with the New York Department of Financial Services (NYDFS) by agreeing to pay $100 million. This was due to concerns about the exchange’s programs that ensure they follow financial rules.
In response to this, Coinbase has agreed to pay a $50 million fine, and they’re also putting an extra $50 million into making their compliance programs stronger. The NYDFS found some serious issues in Coinbase’s programs, which led to them breaking the law in New York and not properly handling things like virtual money, online security, money transfers, and tracking transactions.
The NYDFS also mentioned that these problems made Coinbase vulnerable to illegal activities like scams, money laundering, and illegal transactions that involve things like child abuse material and drug deals.