The New York-based cryptocurrency trading platform, LedgerX, announced its conception to practise Bitcoin options contracts.
LedgerX Receives CFTC Approval
On July 24, the cryptocurrency trading platform LedgerX, officially got approval yesteryear the USA Commodity Futures Trading Commission, to run equally a federally-regulated exchange and decided to denote its plans to offering Bitcoin options contracts. In an official press release, the New York-based platform explained inward item its conception to practise i to vi calendar month Bitcoin options contracts. In a Bloomberg article, the CEO in addition to Co-Founder of LedgerX LLC, Paul Choo quoted following:
We're getting people that desire to hedge in addition to people that desire exposure to a novel property course of written report that they tin grade notice add together to their portfolio in addition to assistance diversify, in addition to larn potential upside of potential digital currency.
Mr.Choo is hoping that these options contracts volition let mainstream investors in addition to traders to include Bitcoin into their portfolios in addition to hence increase the popularity of Bitcoin. The cryptocurrency platform is likewise planning to offering Ethereum options contracts for the future.
More Regulatory Hoops to Jump Through
After the USA Commodity Futures Trading Commission granted LedgerX LLC a derivatives clearing organization (DCO) license, it volition withdraw to comply alongside for sure regulatory measures that are imposed yesteryear the SEC. With the novel license, the platform tin grade notice legally render fiscal instruments that are backed yesteryear cryptocurrencies similar Bitcoin, Ethereum, Litecoin etc.
But this novel license won't merely come upwards alongside benefits only. LedgerX volition travel obligated to brand their user-data to a greater extent than transparent for regulatory in addition to constabulary enforcement agencies. These novel regulatory measures mightiness brand traders in addition to investors retrieve twice earlier they start trading on the cryptocurrency platform.
Mr.Choo believes that these measures volition travel an of import footstep for cryptocurrency adoption yesteryear banks, broker dealers, eligible investors, and futures committee merchants. The Co-Founder likewise added following:
It agency a lot, non merely for the industry, but globally, because the CFTC volition develop the event of what a well-licensed clearinghouse in addition to telephone substitution based roughly digital currencies volition await like.
European in addition to Asian regulators bring been strangling to properly regulate cryptocurrency exchanges in addition to platform. CFTC's conclusion mightiness develop the foundation for hereafter regulatory guidelines of cryptocurrency exchanges worldwide.
What are your thoughts on the Bitcoin options contracts? Do you lot retrieve that CFTC's conclusion volition develop a novel regulatory touchstone for cryptocurrency exchanges? Let us know inward the comments below!
Images courtesy of Pexels, AdobeStock
The post LedgerX Receives CFTC Approval, Introduces Bitcoin Options Contracts appeared offset on Bitcoinist.com.
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