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34 Crypto Entities Are Added by CFTC to the Red List

34 Crypto Entities Are Added by CFTC to the Red List
34 Crypto Entities Are Added by CFTC to the Red List

The United States Commodity Futures Trading Commission (CFTC) has said in a notification that it added 34 foreign businesses that were not registered to its Registration Deficient List on July 14. The CFTC does not necessarily believe that the inclusion on the list indicates that the firms have broken any laws. Instead, it acts as a warning to people who are a part of the ecosystem, informing users to look for things like potential fraud.

The RED list of cryptocurrency platforms includes Bitpay Options, Algobit, and Capital Trading Hub. Many regulatory bodies worldwide believe these sites should be outlawed, especially regarding trading binary options. For instance, the U.K. and the E.U. have outlawed dealing in binary options.

The notification outlines the potential grounds for adding a company to the list, which primarily relates to doing business with entities not registered with the agency while trading binary options or foreign currency, amongst other things. It states,

“A firm is added to the RED List when the CFTC determines, from investigative leads and public inquiries, that it is not registered with the Commission and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex), or other products. The Commodity Exchange Act generally requires intermediaries in the derivatives industry to register with the CFTC. An “intermediary” is a person or firm that acts on behalf of another person in connection with trading futures, swaps, or options. Depending on the nature of its activities, an intermediary may also be subject to various financial, disclosure, reporting, and recordkeeping requirements. There are some exceptions or exemptions where an intermediary does not require registration”

The RED list now has more than 200 entities. Along with several other U.S. government organizations, the CFTC is looking to tighten regulations on the cryptocurrency sector.

The United States is Preparing for Extensive Crypto Regulation

Several financial agencies in the United States seek to regulate cryptocurrencies, including the CFTC. The increase in crypto use and the recent market meltdown caused by well-known events have encouraged the nation to focus more on crypto regulation.

As a result, they are working together on many market-related issues. For instance, while the United States Securities and Exchange Commission (SEC) focuses on securities legislation for the cryptocurrency market, the U.S. Treasury concentrates on stablecoin regulation.

As many may look to it for their stances on cryptocurrency, the entire globe will be closely watching the U.S. results. In any case, it appears that cryptocurrency regulation will soon be implemented, which will have a significant impact on the market.