CFTC labels 34 crypto and forex firms as unregistered

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The United States Commodity Futures Trading Commission (CFTC) has included 34 unregistered foreign companies on the Registration Deficient List, of which at least six companies provide crypto-related services.

CFTC announced that it had disclosed the list of firms that are required to register with them to continue to provide their services which include trading foreign currencies, binary options or other products like crypto assets. The entities added to the Registration Deficient List or the RED list are CryptoBO, CryptoShpereFX, Bitpay Options, B.O. TradeFinancials, OPrime Crypto Fx and Direct Cryptos. 

The Commodity Futures Trading Commission has allocated 202 companies to the RED since 2015, cautioning US-based investors to be careful “when participating in products or markets that historically have seen a large number of fraud complaints.” Some of the websites of the crypto firms mentioned on Thursday were not operating at the time of list publication.

CFTC commissioner Kristen Johnson said, “because they are not registered with the CFTC, customers engaged in transactions with these entities may not receive the benefits of the customer protections, safeguards and guardrails long-adopted and deeply embedded in the CFTC’s oversight of the markets. Transacting with unregistered entities, particularly those operating without such oversight and beyond our borders, may expose U.S. customers to significant and concerning risks.”

Securities and Exchange Commission (SEC), along with the CFTC, are two of the few U.S. regulatory government departments that can bring enforcement actions in matters concerning crypto firms. The lack of clear regulations for digital assets in the United States is a major concern of many industry experts. In June, a bill was introduced in the U.S. addressing how CFTC and SEC can handle responsibilities related to the digital asset sphere.   

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash