Digital Currency Bitcoin Announced as a Commodity By U.S. Regulator Officially
Digital Currency Bitcoin as Commodity
The CFTC or the Commodity Futures Trading Commission had filed charges against exchanging of Bitcoin and digital currencies and for holding trading activities of option contracts on their platform. That charges was already settled then.
It has been argued and discussed for so long on how Bitcoin and digital currency should be defined and the market participants exclaimed that it could be defined as a commodity. CFTC on the other hand was reviewing whether these digital currencies like Bitcoin and cryptocurrencies are under their authority or not.
Digital Currency is now under CFTC Jurisdition
Once the U.S. Regulator announced that Bitcoin and digital currency are officially known as a commodity, CFTC jurisdiction with regards to cryptocurrency trading is clear. The Bitcoin and other digital currencies trading falls under their regulation and they have now the power to provide oversight on the trading of digital currency options and futures. In any case that CFTC find out that there is a manipulation going on with the futures or any false acts with regards to that matter, charges will be brought up to the people behind the wrongdoing.
If there are companies who wish to start a trading business for Bitcoin and digital currency futures or derivatives, they are obliged to register first as a designated contract market as what CME Group is or as a swap execution facility like Coinflip. Therefore, Coinflip isn’t the only company which is providing a Bitcoin / digital currency futures or derivatives trading platform.
Regarding Bitcoin and digital currency trading, Aitan Goelman, the Commodity Futures Trading Commission Enforcement director warns in a statement that all the participant s in the commodity derivatives markets should follow the same rules and that rules is applicable to all whether there is an innovation for the digital currencies and Bitcoin that are going on. There is no act that excusable in the following the rules.
Coinflip is not alone in giving the public a place to hold Bitcoin and digital currency derivatives and futures trading and there are companies that are holding unregulated exchanges and these activities are happening in some places now, thus these words of Goelman is pertaining to these companies. CFTC’s eyes in on them and they will be find out soon.
With this, the Bitcoin and other digital currency’s anonymity in dealings has come to light. This will help the U.S. Trading to have an open and clean transaction. This event also make the business cost to potentially increase.
Regarding this topic for Bitcoin and Digitral currency, Conflip though consent to the order neither deny any findings or conclusion nor admitting it. The Coinflip’s CEO Francisco Riordan said that “the cease and desist was a fair settlement” when being asked for their comment. He also states that the funds of the customers had already been refunded before the CFTC contacts them. They refunded the fund last July 2014. The CEO also added that there wasn’t sufficient trade volume with Bitcoin for the platform to continue as well as with any other digital currency .