While a majority of the crypto market is recovering from the damage made by the bears, prominent exchanges remain unfazed. Coinbase and Binance among others have been rolling out several developments for their users. But will it really fare well in this bloody market?
Earlier today, Coinbase revealed that its retail investors would be able to trade Bitcoin futures on the exchange. Earlier this year, Coinbase managed to acquire FairX, a registered platform that offers futures products. Now, banking on its acquisition, the exchange would be allowing its users to explore the derivates market from Monday.
Unlike other derivatives platforms, the Coinbase Derivatives Exchange would reportedly offer Nano Bitcoin Futures [BIT]. Elaborating on its brand new product the exchange said,
“At 1/100th of the size of a Bitcoin, it requires less upfront capital than traditional futures products and creates a real opportunity for significant expansion of retail participation in US regulated crypto futures markets.”
With this, Coinbase intends to lure in more retail investors and unlock significant growth in the $3 trillion derivatives market.
Additionally, Coinbase is still awaiting a regulatory nod for its FCM [Futures Commission Merchant] license. With this, the exchange can elevate its presence in the market by offering margined futures contracts.
Dutch regulators now have eyes on Coinbase
Bitcoin started out as an asset that was free from the shackles of centralized entities. Giving financial privacy as well as freedom to people, Bitcoin came as a breath of fresh air. However, defying the same, regulators in the Netherlands urged Coinbase users to provide extensive information about their transactions.
In a recent blog post, Coinbase said that all of its Netherlands customers would have to abide by the latest Know Your Customer [KYC] requirements. This would include mentioning the purpose of the transfer, the recipient’s full name along with the residential address.
Additionally, Coinbase has been making immense headway untethered by the gruesome bears in the market. Just yesterday, the platform announced the launch of Coinbase Advanced Trade, a replacement for Coinbase Pro. Despite this, Coinbase and most Coinbase-backed platforms have been sacking their workforce.
While the bear market can be a great place to roll out new developments, the regulatory pressure, lack of job security, and immense losses can be heinous.