14 Unregistered Crypto Trading Firms Face CFTC Wrath

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The Commodity Futures Trading Commission (CFTC) filed charges against 14 crypto trading entities for failure to register as Futures Commission Merchants (FCMs) as directed in the crypto policy framework by the commission. Furthermore, unregistered companies that had made false and misleading claims of having CFTC registration and National Futures Association (NFA) membership was also brought under the regulatory umbrella. The legal notice requires all mentioned companies to cease and desist from violating the Commodity Exchange Act and CFTC regulations.

“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,” said Division of Enforcement Acting Director Vincent McGonagle.

These firms remained Unregistered and How

According to the CFTC, the 12 companies that failed to register with FCM, were actively providing FCM services like, facilitating users to purchase binary options based on the value of commodities like foreign currencies and cryptocurrencies including Bitcoin, and further enable the users to transfer funds to them. These twelve companies include Tradingforexpay, Cryptofxtrader, Bitfxprofit, Globalnationfx, BinanceFxTrade, MaxForexOption, ProCryptoMinners, ProFX-Capitals, Smarter Signals, Prime Expert Trade, Star Fx Pro, and Excotradeoptions.

The remaining two companies that have also been charged by the CFTC offered services related to trading in futures or other derivative products and falsely claimed registration with the CFTC and member of the National Futures Association (NFA). These firms included Climax Capital FX, Digitalexchange24.com.

Unregistered and Unregulated

The CFTC has also warned investors to verify a company’s CFTC registration before making any short- or long-term financial commitments. Customers to reconsider trusting firms that are unregistered with the NFA, with their funds’ security. Furthermore, the CFTC noted that a company’s registration status can be found using NFA BASIC.

The US regulators are persistent in their efforts at clamping down on the crypto industry. The SEC Chairman, Gary Gensler recently issued yet another warning to crypto businesses steering clear of regulations. The SEC Chair noted that unregulated crypto markets and companies operating outside the regulatory purview “will not end well”.

The post 14 Unregistered Crypto Trading Firms Face CFTC Wrath appeared first on Coingape.

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