An array of New York-based crypto options platforms were under fire after they failed to register with the Commodity Futures Trading Commission [CFTC]. The CFTC in its recent press release revealed the names and the reason behind pressing charges against the firms.
Regulatory entities have been exerting their power now more than ever. The emergence of the crypto market had certainly proved to be distressing for many. The nature of the crypto industry and the regulated sector of it has posed a problem to a wide range of people. The demand for crypto has noticed drastic growth and in order to safeguard the society against any possible loss/scam/fraud regulators were seen urging crypto platforms to register and garner a proper license. This, however, was overlooked by many.
Therefore, taking things into its own hand, the CFTC decided to charge over 14 New York i platforms in total for not registering. About 12 platforms out of the 14 were said to be delivering crypto-related services.
New York-based crypto platforms under fire
The crypto platforms that were charged by the CFTC included, Bitfxprofit, Star FX Pro, Smarter Signals, Tradingforexpay, Cryptofxtrader, and BinanceFx Trade. The last one on the list wasn’t related to Changpeng Zhao’s crypto exchange, Binance in any way. In its latest press release, the CFTC noted that none of the aforementioned New York-based platforms had registered as futures commission merchants [FCMs].
The Division of Enforcement Acting Director, Vincent McGonagle addressed the latest incident and said,
“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.”
The CFTC noted that it was important and mandatory for every firm that delivered services related to futures, swaps, contracts, and options to register with the financial watchdog as an FCM. However, platforms whose services are limited to spot markets do not have to undergo this registration.
Additionally, the regulator went on to urge the public to stay alert and invest in firms that have registered with the CFTC. An individual can verify a company’s registration status through NFA BASIC.