The Commodity Futures Trading Commission (CFTC) has penalized 12 crypto options companies in New York for failing to register with the agency. Some of the listed companies include Bitfxprofit, Star FX Pro, Smarter Signals and BinanceFx Trade.
The CFTC announced in a news statement on Sept. 29 that it is pursuing charges against 14 organizations in total, with the 12 crypto-focused enterprises being held accountable for failing to register as futures commission merchants (FCMs). “All of the firms were purportedly based in New York,” according to the report.
The other two firms are accused of posting false information concerning their National Futures Association (NFA) membership and CFTC registration.
Bitfxprofit, Star FX Pro, Smarter Signals, and BinanceFx Trade are among the crypto options providers featured, albeit the latter is unaffiliated with the large global exchange Binance despite its name.
Acting Director Vincent McGonagle of the CFTC’s Division of Enforcement said, “Today’s actions reflect the CFTC’s devoted efforts to aggressively ferret out criminal actors falsely claiming to possess genuine registrations and protect the trading public.”
Firms that provide futures exposure to commodities must register as futures commission merchants (FCMs) with the CFTC. The commission oversees the derivatives markets, which include futures contracts, options, and swaps, but not the spot markets, which are used by ordinary traders.
On Tuesday, the derivatives market regulator pulled the enforcement hammer down on Kraken, ordering the company to pay $1.25 million in civil fines for alleged Commodity Exchange Act violations.
Following his resignation in October, CFTC commissioner Dan Berkovitz will join the Securities and Exchange Commission (SEC) as general counsel. Berkovitz is said to be working on a “regulatory agenda that will strengthen investor protection” with SEC head Gary Gensler.
BitMEX, a crypto derivatives exchange, agreed to pay the CFTC and FinCEN a $100 million civil penalty for “illegally running a cryptocurrency trading platform and anti-money laundering offenses” last month.