Tassat will be able to launch Bitcoin swaps after all, says CFTC

Tassat will be able to launch Bitcoin swaps after all, says CFTC

Risk Disclaimer >>
Ad disclosure Fintech-Insight stands firm in its mission to facilitate sound financial decisions for you. We forge alliances with specialists to provide the latest in news and facts. Engagement with designated links, sponsored entries, products and/or services, leading transfers to brokers, or promotional content might entail financial recompense for us. We pledge to protect our users from any negative repercussions arising from utilizing our site. Be informed that no content hosted here should be interpreted as authoritative in legal, tax, investment, financial matters or any expert counsel; it is meant for informational purposes exclusively. Should there be any concerns, securing the guidance of an independent financial consultant is recommended.

The fintech firm was supposed to reinstate its CFTC registration after 12 months of no trading but will not have to face an enforcement action.

3938 Total views

41 Total shares

Tassat will be able to launch Bitcoin swaps after all, says CFTC

The United States Commodity Futures Trading Commission will still be allowing New York-based fintech firm Tassat to proceed with its Bitcoin swap contracts before it gets the usual approval for reinstatement.

According to a Sept. 15 statement from the CFTC’s Division of Market Oversight (DMO), the regulatory body will not stop Tassat from launching a swap execution facility (SEF) in Q4 2020, even after the firm failed to renew its registration following 12 consecutive months without trading. Today’s action gives Tassat one month to file for reinstatement of its registration and will protect the firm from legal action for beginning trading before it receives CFTC re-approval.

“DMO will not recommend the CFTC commence an enforcement action against Tassat for failing to reinstate its SEF registration,” the DMO stated. The regulatory body’s decision extends to Tassat listing certified Bitcoin (BTC) swap contracts and participants who trade the contracts.

After applying to become a regulated crypto derivatives exchange with the CFTC in November, Tassat did not launch its swaps exchange by Aug. 1, when the regulatory body labeled the firm as “dormant.” Tassat attributed the delays to the current pandemic, and requested to be exempt from applying to reinstate its status as an SEF.

The CFTC’s decision grants Tassat relief from the reinstatement requirements, and brings it closer to launching a crypto derivatives exchange with full regulatory oversight. The fintech firm reportedly hopes to list physically-delivered BTC derivatives for institutional investors starting in Q4 2020.

Regarding the news, Kevin Lupowitz, COO of Tassat, told Cointelegraph: “We appreciate the CFTC’s approval of our petition as we finalize our launch timeline. We look forward to sharing more details as the launch approaches.”

Updated Sept. 16: This article has been updated to reflect the nature of the relief in the CFTC’s announcement.

Risk Disclaimer

Fintech-Insight is dedicated to delivering unbiased and dependable insights into cryptocurrency, finance, trading, and stocks. However, we must clarify that we don't offer financial advice, and we strongly recommend users to perform their own research and due diligence.

Leave a Reply