Bitcoin Operator Coinflip Settles with the Feds

In the first enforcement case against a Bitcoin operator after recognizing the cryptocurrency as a commodity, Bitcoin operator Coinflip has reached a settlement with the U.S. Commodity Futures Trading Commission (CFTC).

With the new ruling that virtual currencies are to be recognized as commodities that are under the rules and regulations of existing laws, the U.S. derivatives regulators brought their first case against a Bitcoin trading platform, Reuters reports.

The Federal agency said that a settlement had been reached with San Francisco-based trading platform Coinflip and its CEO Francisco Riordan.

The charges were originally brought forward against the company and its CEO for conducting activity related to commodity options transactions without complying with CFTC regulations and the Commodity Exchange Act (CEA).

Specifically, the charges were for “operating a facility for the trading or processing of commodity options without complying with the CEA or CFTC Regulations otherwise applicable to swaps or conducting the activity pursuant to the CFTC’s exemption for trade options.”

The agency noted that Coinflip was operating Derivabit, an online platform that facilitated buyers and sellers with Bitcoin options. Now that Bitcoin is considered a “commodity”, the CFTC contends that Coinflip should have been registered and compliant with

Read more ... source: CryptoCoinsNews