CFTC to Issue Crypto Derivatives Guidance

The advisory addresses market surveillance, large trader reporting, risk management and governance
23 May 2018   441

The leading regulator of the US markets has issued a new guide for exchanges and other trading platforms, which may be interesting listing of futures for bitcoins and other crypto-currency derivatives. This is reported by Coindesk.

In the published document, the Commodity Futures Trading Commission (CFTC) provides a number of guidelines that are recommended for the trading platforms that open up a new market for digital assets.

In particular, the CFTC recommends that exchanges provide the ability to monitor the integrity of the underlying digital asset market with which they set prices for their instruments, work closely with CFTC staff, consult with industry representatives before launching a product, and report to description of the behavior of tools.

In addition, the guidance is designed to help ensure that market participants follow appropriate governance processes with respect to the launch of these products.

Brian Bussey

Director, Division of Clearing and Risk 

A week ago, the representative of the CFTC urged regulators to determine the status of the Ethereum cryptocurrency ASAP.

Australian Company to Issues Crypto Backed Loans

In case of default, financial company named Helio may sell cryptocurrency to cover losses
10 December 2018   78

Helio from Melbourne began issuing loans secured by cryptocurrencies, reports.

The service allows Helio clients to borrow from 1000 Australian dollars ($ 720) on the security of cryptocurrency assets. At the moment, the company accepts Bitcoin, Ether, Litecoin and Ripple.

Helio client crypto assets are stored in a secure wallet, company representatives say. In case of default, the company may sell cryptocurrency to cover losses.

Helio has a credit license (ACL) issued by the Australian Securities and Investments Commission (ASIC). As stated by the company's founder, John O’Shy, Helio was the first licensed organization in Australia to launch this service. According to him, the country has a developed cryptocurrency market, however, suppliers who want to provide loans secured by digital assets are not enough.

In June, the Japanese corporation Abic Corporation began to issue loans secured with Bitcoin