Blockchain.com Files for US Derivatives Licenses

Blockchain.com Pursues US Derivatives Licenses

Blockchain.com has submitted applications to the Commodity Futures Trading Commission (CFTC) for both a designated contract market (DCM) and a futures commission merchant (FCM) license. These approvals would allow the crypto platform to establish and manage its own regulated platform for prediction markets and cryptocurrency derivatives trading in the US.

Currently, Blockchain.com relies on partnerships with offshore entities to offer these types of products. Obtaining these licenses would enable the company to operate these services directly within the US regulatory framework, potentially increasing efficiency and expanding access for American users. The company has not specified a timeline for potential launch following approval.

The application covers a range of crypto-based event contracts and derivatives. This includes markets tied to the outcome of real-world events and financial instruments based on the price movements of various cryptocurrencies. The move reflects a broader industry trend toward increased regulatory compliance as firms seek to establish a stronger foothold in the US market.

The CFTC review process can be lengthy and complex. Blockchain.com’s application will be subject to scrutiny regarding its risk management, clearing procedures, and overall compliance with US financial regulations. Successful licensing would position Blockchain.com as a key player in the evolving US crypto derivatives market.

Source: Decrypt