America

December 19, 2017

US to regulate Bitcoin like other commodities


Bitcoin

Taking a note of the historic rise of Bitcoin in recent times, the Commodity Futures Trading Commission (CFTC) of United States has proposed to regulate the digital coins like other commodities.

The Commission also said that penalties could be imposed on market participants if the buyers cannot take physical control of purchased digital coins in 28 days, a framework that already applies to wheat, oil and gold. In 2017, Bitcoin has jumped more than 1700 percent.

The proposed guidance could apply to US exchanges or transactions overseas involving Americans.

According to a document released by CFTC, “The commission regulates retail commodity transactions, with the exception of contracts of sale that result in actual delivery within 28 days. The commission considers virtual currency to be a commodity.”

In 2016, CFTC sanctioned Bitfinex, one of the biggest digital token markets. Bitfinex agreed to pay $75,000 to settle the case without admitting or denying the allegations.

“Bitfinex broke the law because digital coins weren’t provided to buyers in the required time frame. Instead, the platform held the purchased Bitcoins in Bitcoin deposit wallets that it owned and controlled,” CFTC said.

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