Members of the US Futures Self Regulator (NFA) Asked to Report Virtual Currency Activities

In the United States, there is one agency that is charged with the responsibility of regulating futures. The agency is known as the US National Futures Association, and it is the official Self-Regulatory Organization.

In a new move that is meant to streamline the market, this organization has announced that members that are involved with the services of the digital coins and other related products should register and report all their undertakings.

Organizations Given the Notice

The announcement by the Self Regulatory Organization (SRO) was made on the 27th of March 2018 and was directed to a couple of other organizations in this vast market. The reminder was issued by the United States National Futures Association – NFA, which is basically the Self Regulatory Organization of the United States of America.

Among the agencies that the reminder was sent to were; the Commodity Trading Advisors – CTAs, the Commodity Pool Operators – CPOs, as well as the Introducing Brokers –IBs. This came after having sent similar notices on the same subject just a year ago.

It can be remembered that a number of Cryptocurrency trading firms in the United States launched a myriad of Bitcoin futures trading in December 2017.

The notices were marked 1-17-28 and 1-17-29 and were addressed to the Commodity Trading Advisors, Introducing Brokers, and Commodity Pool Operators on 14th December 2017. The main work of these three organizations is to offer advice, trade, and solicit orders in virtual currencies and other related derivatives.

Report to the NFA

Following those notices that were issued last year, the CTAs, the CPOs, and the IBs are supposed to report all their trading to the body that takes care of the futures activities in the US. That is none other than the National Futures Association.

They would be required to make the report via a yearly questionnaire that is then later filed to the self-regulator.

The Role of the US National Futures Association

As earlier indicated, the US National Futures Association is the basic self-regulatory organization operating in the derivative industry of the United States. It has been designated by another established agency in this industry known as the United States Commodity Futures Trading Commission {CFTC}.
The main work of the NFA is, therefore, to make sure that the traders in this market are not only safeguarded but also offered the services they look for in the best professional manner possible.

It is also tasked with the responsibility of ensuring that the traders and other capitalists abide by all the established regulatory rules and mandates.

Based on the issued notices, traders that are involved with the operations of virtual currencies like Bitcoin, would, from 2018, file the details of their activities with the National Futures Association of the United States. Other bodies that would also be required to adhere to this directive are the brokers, and advisors, all that are registered with the US National Futures Association.

Some of the activities that they would be required to file are the total number of the pools they manage in a given calendar quarter.

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