The CFTC will hold a meeting to discuss issues related to cryptocurrency

nRunaway Comment: With the release of bitcoin futures, cryptocurrency appears to have gained more and more acceptance in the mainstream financial world. However, this does not mean that financial regulators will be free to move on and these agencies are still very concerned about the risks associated with cryptocurrencies. In order to better guide the cryptocurrency emerging market, the CFTC is about to hold a series of related issues meeting to conduct in-depth discussion.n
nTranslation: Inan
Two branch committees of the U.S. Commodity Futures Trading Commission (CFTC) will hold a conference on digital currency this month that will include a self-certification process to approve the issuance of cryptocurrencies.n
CFTC Chairman J. Christopher Giancarlo said in a statement issued on Thursday that the CFTC’s Technical Advisory Committee will discuss how to make wide use of virtual currencies and that the Market Risk Advisory Committee will hold a meeting around the process of self-certification of new products and the rules of this new market .n
Last month, a few days after the futures exchanges CME and CBOE announced they would issue bitcoin futures contracts, the FIA ​​said they were concerned about the impact of changes in bitcoin prices. The FIA’s purpose is to act as a safety net when a company can not pay for the contract.n
FIA said at the time that since Bitcoin is a non-standard product, it should be open to discussion before CMOs or CBOEs are allowed to complete their self-certification.n
Although Giancarlo did not say what these conventions are about the new regulatory policy, Giancarlo said: “Responsible regulatory response to virtual currencies is to educate consumers and uphold the CFTC’s right to oversee transactions in derivatives and spot markets. “n
Giancarlo said the CFTC has come to recognize the risks associated with virtual currencies and specifically mentions bitcoin:n
n”In addition to the technology itself is in its infancy, the risks associated with the virtual currency include: operational risk of unregulated trading platform; cybersecurity risk of trading platforms and virtual currency wallets that may be hacked; fierce speculative risk of price volatility ; Fraudulent and manipulation risks – similar to higher shipments, insider trading, false disclosures, Ponzi schemes and other forms of investor fraud and market manipulation in traditional markets. “n
nThe CFTC also issued a note to investors outlining its response to cryptocurrency-based futures markets.n
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“High fraud risk”n
In addition to the CTFC, North American Securities Administrators Association (NASAA) also issued a circular on Thursday alerting investors who are interested in participating in token sales, cryptocurrencies or cryptocurrencies derivatives, including futures contracts.n
The circular pointed out that a survey found that 94% of local securities regulators considered cryptocurrencies as “highly fraudulent.” 100% of respondents believe that more investor protection measures need to be implemented through regulation.n
NASAA specifically mentioned that “ICO and cryptocurrency-related investment products” are emerging investor threats in 2018. Joseph Borg, chairman of the organization, the Alabama Securities Commission, said the “fierce price volatility” may encourage potential investors to channel their money to high-risk products they do not necessarily understand.n
The SEC released a statement in support of NASA’s warning that investors are protected by state and federal securities laws and that sellers must comply with these regulations.n
However, the SEC said, “It is clear that many ICO promoters and others involved in the cryptocurrency-related investment markets do not comply with these regulations.”n
The statement also said that although the SEC will investigate such violations, there is no guarantee that investors will be able to get back their lost or stolen funds. The statement finally suggested that anyone considering the sale of investment tokens first take a look at NASAA’s warnings.n

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