CFTC action on 14 NewYork Based options crypto exchange

CFTC action on 14 NewYork Based options crypto exchange 2

CFTC charges many crypto options businesses. CFTC found that a total of 12 crypto exchanges failed to register as Merchants with CFTC.

In the present time there are many crypto exchanges related to derivatives, futures & Options trading. For such operations, all the crypto exchanges needed to have license and registration with the Commodity Futures Trading Commission (CFTC). But many of the crypto exchanges are running their operations without any registration or permissionless. Recently CFTC took action on Kraken exchange, which was found to facilitate crypto transactions without having registration with CFTC as Merchant for the related crypto services. 

Read also: CFTC fines $1.25M on Kraken for CEA violation

In the latest release, The Commodity Futures Trading Commission (CFTC) reported that they charged 14 NewYork based crypto exchanges. 12 out of 14 crypto exchanges were found to have no registration with the CFTC regulatory body as a merchant. 

While 2 exchanges found that they are spreading misleading information to their users. They are claiming that they are already registered with the National Futures Association (NFA) membership and the CFTC. 

The most popularly mentioned names of such exchanges are itfxprofit, Star FX Pro, Smarter Signals and BinanceFx Trade. CFTC noted that BinanceFx Trade is not affiliated with Binance exchange, it’s totally independent from Binance firm. 

Vincent McGonagle, the acting director of Enforcement Division, said that

“Today’s actions reflect the CFTC’s dedicated efforts to aggressively root out bad actors falsely claiming to hold legitimate registrations and protect the trading public”

In the present time CFTC seems very aggressive toward those crypto exchanges which are involved in crypto operations illegally without any permission, except spot crypto exchanges. In the latest CFTC charged $1.25 million on Kraken. 

Read also: VISA Unveils UPC Platform For CBDCs & Stablecoins Transactions

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