NFA To Adopt Interpretive Notice On Disclosure Requirements For Virtual Currency Activities

The National Futures Association ("NFA") submitted a proposal to the CFTC to adopt an interpretive notice imposing disclosure requirements on NFA members engaged in virtual currency activities. The interpretive notice provides separate guidance for (i) futures commission merchants ("FCMs") and introducing brokers ("IBs"), and for (ii) commodity pool operators ("CPOs") and commodity trading advisors ("CTAs"). The proposal will become effective 10 days after CFTC receipt of the NFA submission unless the CFTC elects to review the proposal for approval.

Under the proposal, an FCM or IB would be required to (i) provide the NFA Investor Advisory and CFTC Customer Advisory on Virtual Currencies to any customer involved in a virtual currency derivative transaction, (ii) inform a customer or counterparty involved in underlying or spot virtual currencies of the lack of NFA regulatory oversight of these activities, (iii) present retail customers with advisories and standardized