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CySEC Regulated Coinbase Expands OTC Derivatives Offering Across the EEA

Cryptocurrency exchange Coinbase has launched new futures
contracts for users in Europe. The rollout provides access to both crypto and
traditional market exposure through regulated products.

The offering is Coinbase’s first under its MiFID II licence,
reported in January this year, obtained
through the acquisition of BUX Cyprus. Its CySEC-regulated entity allows
the exchange to offer over-the-counter derivatives across the European Economic
Area. The contracts are available to Coinbase Advanced users in 26 countries,
including Germany, France, and the Netherlands.

Crypto, Magnificent Seven Stocks Combined Futures

The new lineup includes crypto futures tied to Bitcoin and
other digital assets. Coinbase also introduced an equity-index product called
the Mag7 + Crypto Equity Index Futures.

The contract combines exposure to the
so-called Magnificent Seven stocks—Apple, Microsoft, Alphabet, Amazon, Nvidia,
Meta, and Tesla—with crypto-linked equities and BlackRock iShares
exchange-traded funds tied to BTC and Ether.

Traders Access Up To 10x Leverage

Coinbase has launched two types of cash-settled futures
contracts. One type is perpetual-style futures with five-year expiries. The
other type includes dated contracts with monthly or quarterly expiries. Traders
can access up to 10x leverage on select crypto-denominated contracts and equity
indices, and up to 5x leverage on other products. Fees start at 0.02% per
contract.

Exchanges Expand European Crypto Derivatives Offerings

Coinbase’s launch comes as several other crypto exchanges
expand into Europe with derivatives offerings. Kraken
acquired a Cyprus-based entity and began offering crypto derivatives under
a MiFID II licence last year. Other firms with European crypto licences include
Crypto.com and OKX, while Gemini
is seeking a licence from Malta. The licences also permit these exchanges
to offer CFDs.

This article was written by Tareq Sikder at www.financemagnates.com.
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