US Agency Recruits Whistleblowers To Catch Virtual Currency Fraudsters

WASHINGTON (UrduPoint News / Sputnik – 09th May, 2019) Whistleblowers who report cases of fraud using virtual currencies such as Bitcoin are …

WASHINGTON (UrduPoint News / Sputnik – 09th May, 2019) Whistleblowers who report cases of fraud using virtual currencies such as Bitcoin are being solicited with the prospect of earning big cash rewards and steps to protect their identities, according to Commodity Futures Trading Commission (CFTC) advertisement posted online on Thursday.

“CFTC Whistleblower Alert: Be on the Lookout for Virtual Currency Fraud,” the advertisement reads. “We will pay monetary awards to persons who voluntarily provide us with original information… if that information leads to a successful CFTC enforcement action resulting in more than $1 million in monetary sanctions.

The advertisement also promises confidentiality and protection against retaliation.

The notice includes instructions on how to report suspected malfeasance, along with a list of techniques used by virtual currency fraudsters.

One such technique called “bump and dump,” is a scheme in which fraudsters buy huge amounts of a currency to drive up the price and then quickly sell everything, according to the CFTC.

The Securities and Exchange Commission, which operates a similar program, frequently pays whistleblower rewards in excess of $1 million.

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CFTC May Approve Ethereum Futures, ETH Surges 8%

The U.S. Commodity Futures Trading Commission (CFTC) is willing to approve Ethereum futures contract provided they receive relevant applications …

The U.S. Commodity Futures Trading Commission (CFTC) is willing to approve Ethereum futures contract provided they receive relevant applications which tick all the required boxes.

I think we can get comfortable with an Ether derivative being under our jurisdiction,” said the CFTC Insider. “A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us,” he added.

It is rumored that the CBOE (Chicago Board Options Exchange) May Be Gearing Up To Offer Ethereum Futures.

The news indicates:

  1. CFTC’s desire to approve a new relevant Futures Contract.
  2. Ethereum is positioned next to Bitcoin in the Futures Contract Pipeline.
  3. Ethereum contract would be a shot in the arm to the Ethereum Community.
  4. CFTC will have a regulatory hold on the Top 2 cryptocurrencies.

The CFTC has been showing an interest in Ethereum since last year, when, on December 11, 2018, it rolled out an RFI (Request for Information) to seek Public Comments on Ethereum’s Mechanics and Markets in order to better inform the Commission’s understanding of the technology, mechanics, and markets for virtual currencies beyond Bitcoin, namely Ether and its use on the Ethereum Network.

The RFI consisted of 25 questions on the below categories:

  • Purpose and Functionality
  • Technology
  • Governance
  • Markets, Oversight, and Regulation
  • Cyber Security and Custody

It is to be noted that, Bitcoin Futures was the first to be approved by the CFTC, when, on December 1, 2017, it published a statement that the Chicago Mercantile Exchange Inc. (CME) and the CBOE Futures Exchange (CFE) self-certified new contracts for bitcoin futures products, and the Cantor Exchange (Cantor) self-certified a new contract for bitcoin binary options.

The Bitcoin futures might have caused the Bull Run of 2017, however, it might have also lead to the Price Decline of Bitcoin (BTC) when the price dropped from 20000 USD to 6200 USD.

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ETH Spearheads Crypto Market on Encouraging Ethereum Futures News

Today, the cryptocurrency market is being spearheaded by Ethereum – the second largest cryptocurrency by market cap has seen an impressive 8.7% …

While cryptocurrencies can display strong swings without any apparent fundamental trigger, it’s possible today’s ETH run was catalyzed by positive news regarding the attitude of U.S. regulatory agency CFTC (Commodity Futures Trading Commission) towards the idea of Ethereum futures being traded on a regulated U.S. exchange.

CFTC-regulated Ethereum futures might not be too far away

Earlier today, CoinDesk published a report citing an unnamed CFTC senior official as saying that the agency would be comfortable with approving an ETH futures contract for trading if it meets the agency’s requirements:

“A derivatives exchange comes to us and says ‘we want to launch this particular product.’ … If they came to us with a particular derivative that met our requirements, I think that there’s a good chance that it would be [allowed to be] self-certified by us.”

Let’s recall that late last year, the CFTC requested public feedback on both Ethereum as a public blockchain network and ETH as a digital asset.

While the first Bitcoin futures contracts approved by the CFTC already went live in December of 2017 on both the CME and CBOE exchanges, the context is slightly more complicated when it comes to Ethereum. Bitcoin is almost universally being viewed as a commodity, while a case can be made that ETH is a security – unlike BTC, which anyone was able to mine from the start, ETH was initially offered through an initial coin offering (ICO).

Still, even though the SEC, the chief U.S. securities regulator, hasn’t come out with a definitive stance on Ethereum, the director of the agency’s Division of Corporation Finance, William Hinman, stated in a June 2018 speech that he does not believe that ETH is a security in its current state.

If a regulated Ethereum futures contract does indeed come to the U.S. market, it has the potential to open up the market to a class of investors that are not comfortable with existing marketplaces for speculating on the price of ETH.

The demand for crypto futures is certainly there – even though CBOE has decided to stop offering new Bitcoin futures, its larger competitor CME saw record trading volume on its cash-settled Bitcoin futures just a month ago with around $546 million in notional trading volume in a single day.

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Trusted CFTC Source Says Ethereum Futures Could Get The Green Light By US Regulators Soon

Moreover, the regulatory agency informed that it was looking at Ethereum back in December when the regulator published a “Request for Input” in …
Trusted-CFTC-Source-Says-Ethereum-Futures-Could-Get-the-Green-Light-by-US-Regulators-SoonTrusted-CFTC-Source-Says-Ethereum-Futures-Could-Get-the-Green-Light-by-US-Regulators-Soon

Regulators In The US Could Eventually Approve Ethereum Futures According To CFTC Sources

The U.S. Commodity Futures Trading Commission (CFTC) could eventually approve Ether (ETH) futures contract. The information was released a few hours ago by ConDesk citing inside sources.

Regulators Could Approve ETH Futures Contracts

The CFTC is one of the regulatory agencies in the United States and oversees derivatives markets in the country. Back in 2017, it gave the green light for the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE) to launch Bitcoin (BTC) futures.

The regulator seems open to approving a similar product for Ether, the second largest cryptocurrency in the market in terms of market capitalization after Bitcoin.

On the matter, the person from the CFTC commented during a conversation with CoinDesk:

“I think we can get comfortable with an ether derivative being under our jurisdiction. We don’t do bold pronouncements, what we do is we look at applications before us.”

According to the report released by CoinDesk, a CFTC-supervised futures market could increase confidence among regulators and play an important role in the approval of a Bitcoin Exchange Traded Fund (ETF). Many of these ETFs were rejected in 2018, even when the market was expecting for the approval of at least one of these ETFs.

Moreover, the regulatory agency informed that it was looking at Ethereum back in December when the regulator published a “Request for Input” in which individuals could provide answers to several questions regarding Ethereum. The main intention is to help the regulator understand “the range of issues that might exist” around this digital asset.

35 comments were submitted to the regulatory agency and several individuals and firms provided information about Ethereum including Craig Wright, Coinbase, Blockchains LLC, Circle, and many others.

Amy Davine Kim, the chief policy officer at the Chamber of Digital Commerce, explained that the regulator has enforcement jurisdiction over the spot market “after-the-fact.” Moreover, those assets that are not considered securities are broadly defined as a commodity.

Thus, if the CFTC approves Ether futures, it will be very positive for the digital currency and the crypto space. It will legitimize the space and it will also have an important impact on other regulatory agencies such as the CFTC.

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CFTC May Approve Ethereum Futures

The US Commodity Futures Trading Commission says it’s willing to approve Ether futures contracts as long as proposals meet all the regulator’s …
Media TeamMay 6, 2019 4:31 PM
May 6, 2019 4:31 PM
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The US Commodity Futures Trading Commission says it’s willing to approve Ether futures contracts as long as proposals meet all the regulator’s requirements. If approved, these futures could give investors access to a new derivatives product, ease retailer concerns over accepting crypto, and solidify the CFTC’s authority in the crypto industry.

Read the full article here.

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