The US regulator CFTC is investigating four crypto exchanges. The Exchanges Bitstamp, Kraken, itBit and Coinbase are suspected to have operated price manipulation in the crypto sector. From the commission, however, are also friendly voices against cryptocurrencies.
The Commodities Futures Trading Commission (CFTC), one of the two major US financial market regulators, has summoned Exchanges Bitstamp, Kraken, itBit and Coinbase for investigation. The aim is to find out whether the affected crypto exchanges were involved in price manipulation on the crypto market.
Irregularities in the Bitcoin Futures
The focus is on the Bitcoin futures, which the Chicago futures exchange CME Group had launched on the market half a year ago. These Bitcoin trading options derive their value from prices at which Bitcoin trades on the four said crypto exchanges. The CFTC has stopped Exchanges then to hand over extensive trade data to check whether the prices of futures by movements on the crypto market be specifically manipulated .
As the Wall Street Journal reports, the issue of price manipulation has long been a factor in Bitcoin futures. Last December, CME requested the data from the four exchanges, which form the basis for the bitcoin price of the futures. However, Bitstamp, Coinbase, itBit and Kraken did not comply with this request and provided privacy and security concerns.
The CFTC in turn regulates futures trading in the US. As a result, the Bitcoin futures of the CME fall into the direct area of responsibility of the authority. The CFTC wants to prevent price manipulation in the crypto sector from affecting a state-regulated financial product.
The reports of suspicion of price manipulation as well as the summons of the four Exchanges will also have contributed to the current fall of the Bitcoin and the other crypto-breeds. On Sunday, the entire crypto market had fallen more than 10 percent. According to a study, the trade in Bitcoin futures had already been partly responsible for a decline in prices. So many traders had speculated on a falling course — and thus brought about.
Friendly votes from both authorities
The CFTC also displayed its crypto-friendly face last week. Rostin Behnam, Commissioner of the CFTC, said in a speech that “ virtual currencies in every country will become part of the economy. “Behnam believes that cryptocurrencies have a transformative effect on providing financial services to non-bank populations. Thus, corruption can be undermined by more financial transparency.
Also, Jay Clayton, chairman of the other major US regulator, SEC, commented last week. He believes Bitcoin is not a security because it acts as a substitute for state currencies. The situation is different for ICOs, which he continues to regard as securities.
Marko Vidrih @cryptomarks
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