The virtual currency Bitcoin is officially a commodity, like crude oil or wheat, according to the US Commodity Futures Trading Commission (CFTC), as reported by Bloomberg.
The CFTC announced that it had taken legal action against Bitcoin trading and that it had also settled the case to facilitate trading of options contracts on its platform.
“With this order, the CTFC for the first time finds that Bitcoin and other virtual currencies are properly defined as commodities,” according to a statement from the commission.
While market participants have long debated whether Bitcoin could be defined as a commodity, and the CFTC has long considered whether the virtual currency falls under its jurisdiction, the implications of this move are potentially many.
With this move, the CFTC recognizes its authority to oversee the trading of futures and options, which will now be subject to commission regulations.
In cases of irregularities, such as futures contract manipulation, the CFTC will be able to bring charges against those who acted improperly. If a company wants to operate a platform for Bitcoin derivatives or futures contracts, it will need to register as a swap execution facility or
designated futures market. And Coinflip – the company targeted by the CFTC’s legal action – is not the only one providing a platform for trading Bitcoin.
“While there is much excitement surrounding Bitcoin and other virtual currencies, innovation is no excuse for those operating in this space to not follow the same rules that apply to all participants in the markets ,” Eitan Goelman, head of the CFTC’s enforcement division, said in a statement.
Coinflip has complied with the CFTC's orders, Bloomberg reports, without admitting or denying the commission's allegations or accusations .
source: enikos.gr
