Derivatives industry stiffens disclosure standards for Bitcoin futures traders

24 July 2018 7:05am
An industry self-regulator put final touches on standards for virtual currency traders that require them to warn customers that these products are “highly volatile,” vulnerable to hacking and particularly susceptible to fraud.

The National Futures Association guidance, submitted to the US Commodity Futures Trading Commission on Monday, calls for market participants to warn of “increased risk of manipulation and fraud, including the potential for Ponzi schemes, bucket shops, and pump and dump schemes.”

The requirements for traders of virtual currencies and virtual currency derivatives will become effective in 10 days unless the CFTC decides to review them for approval. The Chicago-based industry group has been working with the commission on the notice.