Are virtual currencies mature enough for regulation?

Nov 30, 2017

Topics: CFTC |

Hours after setting an all-time high, the value of Bitcoin tumbled more than 20%. Such extreme trading volatility raises questions, such as how should this currency be regulated?

Regulatory bodies throughout the world are currently in the process of developing guidelines on virtual currency product transactions. Investment managers who have exposure to virtual currency transactions through firm activity or clients should be aware of the increased regulatory focus.

While virtual currency products have been in the headlines, the U.S. Commodity Futures Trading Commission (CFTC) has generating case law precedent in order to build virtual currency regulation standards, with its first enforcement action in September of 2015 against an online derivatives trading platform. Additionally, regulators such as the Hong Kong Securities and Futures Commission (SFC) and the UK’s Financial Conduct Authority (FCA) have issued warnings to financial institutions and investment managers to adhere to anti-money laundering and due diligence processes, and also to investors regarding initial coin offerings (ICOs) and their risks.

Download our latest whitepaper which outlines the recent legal cases and regulatory statements in order to stay on top of the quickly developing world of virtual currency compliance.