A U.S. futures industry self-regulatory organization (SRO) said Tuesday that members working with cryptocurrencies or related derivatives products need to register that activity.
The U.S. National Futures Association (NFA) issued the reminder to commodity pool operators (CPOs), commodity trading advisors (CTAs) and introducing brokers (IBs) after sending twin notices on the subject late last year. Those notices came as several companies in the U.S. moved to launch bitcoin futures trading in December.
As a result of the notices, CPOs, CTAs and IBs are required to immediately report these cryptocurrency activities to the NFA through an annual questionnaire it files to the self-regulator.
Designated by the U.S. Commodity Futures Trading Commission (CFTC), the NFA is the primary SRO of the U.S. derivatives industry, tasked with ensuring that investors are protected and that members adhere to the relevant regulatory mandates.
According to the notices, starting from 2018, cryptocurrency related traders, advisors and brokers registered with the NFA are also required to file details of their activities such as the number of managed pools every calendar quarter.
Trading data image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.