The Commodity Futures Trading Commission (CFTC) has focused on 12 cryptocurrency exchanges that offer options and they are not registered with the Office. The CFTC is the US authority responsible for overseeing and protecting investors who buy commodities.
CFTC arms against unregistered crypto exchanges
According to the announcement, the CFTC is targeting 14 exchanges that sell binary options based on commodities, foreign currencies and cryptocurrencies. Only 12 of them also sell options on BTC. However, none have been registered, so they do not have the necessary permissions.
These are little-known platforms, most of which are based in New York. When we read names, BinanceFxTrade will also jump on us, but on closer inspection of the site with the giant among crypto exchanges, Binance, it has nothing to do.
Acting Director of Law Enforcement, Vincent McGonagle said:
“Today’s announcement reflects the CFTC’s specialized efforts to take aggressive action against exchanges that falsely claim to hold legitimate registrations and protect the trading public.”
The purpose of the body is, in fact, to protect investors from bad investments. The first objective is therefore to exclude those who do not meet regulatory requirements, including the necessary licenses.
US regulatory measures
CFTC measures show that the US authorities are not ready to tolerate this kind of “wild west” surrounding the cryptocurrency sector. After all, Gary Gensler, chairman of SEC, recently announced that unregulated platforms will not have it easy.
In the US, regulation is relatively tight, so much so that a giant like Binance has had to open a kind of subsidiary, Binance US, which is dedicated exclusively to American users. Even Coinbase, which is at home in the US, has problems launching new products.
The Commodity Futures Trading Commission has said that it cannot oversee the entire cryptocurrency sector. Some things are regulated by the SEC, specifically securities, while commodities are regulated, as the name suggests, by the CFTC, which also regulates all other activities that are based on commodities. Because BTC is considered a commodity and not a security, the CFTC can take action against those who sell BTC and derivatives without proper licenses, as has happened at the 12 exchanges listed above.
However, it is clear that the US authorities stand by their announcements and will not rest those who think they can operate without a license and without providing the necessary protection for investors.