CFTC Flags 14 Binary Options Platforms Offering FX, Crypto Trading

The Commodity Futures Trading Commission (CFTC) is tightening its oversight on the US derivatives market and has red-flagged 14 trading platforms that were falsely claiming to have been authorized in the country.

According to the announcement on Wednesday, none of these firms was registered as futures commission merchants (FCMs), but they were making false claims that they have CFTC registration and National Futures Association (NFA) membership.

These flagged trading platforms are Tradingforexpay, Cryptofxtrader, Bitfxprofit, Globalnationfx, BinanceFxTrade, MaxForexOption, ProCryptoMinners, ProFX-Capitals, Smarter Signals, Prime Expert Trade, Star Fx Pro, Excotradeoptions, Climax Capital FX and Digitalexchange24.com.

Almost all of these platforms are offering binary options with currency pairs and Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

A Vigilant Regulator

CFTC is deemed to be one of the most strict derivatives regulators. It requires all derivatives providers to have an NFA membership and a license from itself for offering their services in the United States.

Despite the mandatory obligations, many platforms quietly offer services to US citizens without the proper authorization. While most of these platforms are fraudulent, many well-known companies are often caught for illegally offering derivatives products to US customers.

Most recently, the derivatives regulator slapped a $1.25 million fine on Kraken, one of the oldest and well-reputed crypto exchanges, for offering crypto margin products in the country.

Commenting on the bust, CFTC’s Division of Enforcement Acting Director, Vincent McGonagle, said: “Today’s actions reflect the CFTC’s dedicated efforts to aggressively root out bad actors falsely claiming to hold legitimate registrations and protect the trading public.”

Meanwhile, many companies are inching closer to gain authorization for offering crypto derivatives in the US. Coinbase, the publicly listed crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term in the country, recently applied for an NFA membership, but it also has to gain a CFTC license before listing any crypto derivatives.