The largest American crypto exchange Coinbase has agreed to acquire Commodity Futures Trading Commission (CFTC) regulated FairX crypto derivatives platform.
Thus, crypto exchange will be able to offer retail and institutional clients access to regulated derivatives on digital assets. Launched in May 2021, FairX has an authorized derivatives market license (designated contract market, DCM).
Furthermore, among the partners are TD Ameritrade, E*Trade, StoneX, PhillipCapital; ABN AMRO, Wedbush, Virtu Financial and others.
The exchange is gradually integrating FairX into its ecosystem
Finalizing the transaction will take a place in the first fiscal quarter; the parties must receive regulatory approval. Moreover, the value of the transaction was not disclosed. The exchange is gradually integrating FairX into its ecosystem.
Previously in September, Coinbase sent an application to the National Futures Association (NFA) for registration as a futures intermediary (futures commission merchant, FCM). Also in the future, the move will allow the company to obtain a CFTC license.
In the United States, companies wishing to offer derivatives to customers must obtain a CFTC license. To do this, they usually need to be members of the self-regulatory organization NFA, which conducts registration on behalf of the agency.
FTX.US and Crypto.com acquisitions
Recall that earlier in August FTX.US acquired the LedgerX cryptocurrency derivatives exchange with a DCM license. In addition, the platform has been sold for an undisclosed amount.
“We believe the integration of our technological capabilities, product portfolio and large balance sheet with LedgerX will enhance our ability to provide innovative products to all US cryptocurrency traders,” Brett Harrison (FTX.US president) said. Additionally, He also noted that it is extremely important for the industry to strive to establish relations with regulatory authorities, such as CFTC.
In December, the cryptocurrency platform Crypto.com signed an agreement to purchase the CFTC-regulated Nadex crypto derivatives platform. Following regulatory clearance, the transaction should conclude in the first part of 2022.