CFTC red list

CFTC Adds 34 Crypto Entities to the RED List

  • The Commodity Futures Trading Commission has added 34 crypto entities to its RED list.
  • The entities were added to the list because they have not registered with the agency.
  • The CFTC and other U.S. financial regulators are currently working on regulating the crypto market, and a policy may arrive this year.

The United States Commodity Futures Trading Commission published a notice on July 14, announcing that it had added 34 unregistered foreign entities to its Registration Deficient List (RED list). Addition to the list does not mean that the CFTC considers the entities to have violated any law. Rather, it serves as a warning to those involved in the ecosystem, effectively telling users to be wary of such matters as potential fraud.

Among the crypto platforms that have been put on the RED list are Bitpay Options, Algobit, and Capital Trading Hub. In the view of many regulators around the world, especially with respect to trading binary options, these platforms are illegal. For example, the U.K. and EU have banned binary options trading.

The notice describes why an entity may be added to the list, which mostly has to do with not having registered with the agency when dealing with trading binary options and foreign currency, among other things. It reads,

“A firm is added to the RED List when the CFTC determines, from investigative leads and public inquiries, that it is not registered with the Commission and appears to be acting in a capacity that requires registration, such as trading binary options, foreign currency (forex), or other products. The Commodity Exchange Act generally requires intermediaries in the derivatives industry to register with the CFTC.”

There are now over 200 entities on the RED list. The CFTC is not slowing down when it comes to regulation and, along with several other U.S. agencies, is looking to clamp down on the crypto market.

United States Gearing Up for Wide-Ranging Crypto Regulation

The CFTC is one of many financial regulators in the U.S. that is working on crypto regulation. The country has finally ramped up its focus on crypto regulation, and the growth in crypto adoption and the recent market crash sparked by notorious incidents have spurred them on.

As such, it appears that they are collectively working on different aspects of the market. The U.S. Treasury, for example, is focused on stablecoin regulation, while the United States Securities and Exchange Commission (SEC) is working on securities laws for the crypto market.

The world will keep a close eye on the U.S. proceeds, as many will look to it for their own stances on crypto. At any rate, it seems like crypto regulation is arriving soon, and this will have a marked impact on the market.