CFTC Staff Advise FCMs On Holding Virtual Currency

The Division of Swap Dealer and Intermediary Oversight (DSIO) of the Commodity Futures Trading Commission today issued an advisory to futures commission merchants (FCMs) regarding the holding of virtual currency in segregated accounts.

The advisory provides guidance to FCMs on how to hold and report certain deposited virtual currency from customers in connection with physically-delivered futures contracts or swaps. The advisory also provides guidance that FCMs should follow when designing and maintaining risk management programs concerning the acceptance of virtual currencies as customer funds.

“At the CFTC, one of our core values is to provide clarity to market participants,” said DSIO Director Joshua B. Sterling. “As Chairman Tarbert has stated, the CFTC is committed to fostering responsible fintech innovation and improving the regulatory experience of registered firms where doing so is consistent with our rules. This advisory furthers these critical goals and will provide additional certainty on these issues as the Commission works to establish a holistic framework for digital asset derivatives.”

Source: CFTC

Related articles

  1. From The Markets

    Gemini Launches In The UK

    Crypto exchange and custodian obtains FCA approval.

  2. The opinion provides greater regulatory certainty for banks within the federal banking system.

  3. He joins as part of the recently announced acquisition of Tagomi.

  4. The US regulator said markets are becoming more digitized so banks need to use new technology.

  5. Institutional investors will have the opportunity to securely access the crypto market.