CFTC: tokens to ‘transform’ into commodities

CFTC commissioner reports on the possibility of the tokens ‘transformation’ from securities into commodities
24 October 2017   1419

Brian Quintenz, a commissioner at the Commodity Futures Trading Commission (CFTC), claimed that tokens may “transform” from securities into commodities while speaking at the first annual FinTech Week. The man suggests that tokens can meet distinct regulatory classifications at different times. The assumption, actually, aligns with the policy view of industry experts like Coin Center.

Digital currencies "may actually transform at some point from something that starts off as a security and transforms into a commodity,” speculated Quintenz, as reported by politicopro.com.

That's going to be a very difficult but important conversation for us to have to give the market certainty, to allow for innovation to flourish and continue, but [it’s necessary] to make sure that we're being consistent in how we apply commodity law and protection of consumers across all products.
 

Brian Quintenz
CFTC commissioner

It is worth noting that eatlir this week, LabCFTC issued a primer on virtual currencies. Although this did not constitute official policy, the agency enumerated examples of permitted activities including those of LedgerX, TeraExchange, and NADEX. Thus, LabCFTC explicitly stated that prohibited activities include “a virtual currency futures or option contract or swap traded on a domestic platform or facility that has not registered with the CFTC as a SEF [swap execution facility] or DCM [designated contracts market]".

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   233

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.