The Commodity Futures Trading Commission (CFTC) has indicted 12 New York-based crypto option companies for allegedly failing to register with the regulator.
In 29 press release, the CFTC announced that it is charging a total of 14 companies, with 12 crypto-oriented companies all found guilty of failing to register as florists. All companies are “allegedly based in New York”. Two other companies are charged with providing false information about their membership in the National Futures Association (NFA) and their registration with the CFTC.
Cryptocurrency options providers listed include relatively unknown names like Bitfxprofit, Star FX Pro, Smarter Signals, and BinanceFx Trade – the latter are not affiliated with the global exchange. Despite such a name, great demand for Binance.
“Today’s actions reflect the committed efforts of the CFTC to actively root out malicious actors who claim to be counterfeit in order to maintain legitimate registrations and protect the trading public,” said Vincent McGonagle, director of enforcement.
Companies that invest in commodities through futures must register with the CFTC as an FCM. The Commission regulates the scope of the derivatives market, including futures, options and swaps, but does not oversee the spot market for ordinary traders.
The derivatives market regulator had a busy week after dealing a heavy blow Tuesday to Kraken ordering them to pay $ 1.25 million civil penalties on charges of the Securities Exchange Act. hurt.
On September 28, Cointelegraph reported that CFTC Commissioner Dan Berkovitz will join the Securities and Exchange Commission (SEC) as General Counsel of the Securities and Exchange Commission (SEC) after retiring in October. ”
Related: CFTC Commissioner: The agency has no enforcement resources without Congress
Last month, the crypto derivatives exchange BitMEX agreed to pay the CFTC and FinCEN a civil fine of $ 100 million for “illegally operating a cryptocurrency trading platform and committing money laundering violations.”