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.
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