US Commodity Futures Trading Commission Issues Staff Advisory On Virtual Currency

The Commodity Futures Trading Commission (CFTC) recently issued a Staff Advisory notice (the Staff Advisory) to exchanges and clearing organizations which are interested in listing and trading virtual currency derivatives (sometimes referred to as cryptocurrency derivatives). The intention of the Staff Advisory is to provide regulatory clarity for market participants seeking to innovate in compliance with CFTC regulations. 

Virtual currency derivatives are a growing market which regulators in Canada are paying close attention to. The Quebec securities regulatory authority, the Autorité des marches financiers (AMF), published a reminder on May 24, 2018 that anyone wishing to create or market a derivative linked to a cryptocurrency or another innovative underlying is subject to the Derivatives Act (Quebec) (QDA) including derivatives qualification, derivatives dealer and derivatives advisor registration and derivatives reporting requirements. The Investment Industry