The National Futures Association (NFA) has released a new set of compliance rules for NFA members dealing in cryptocurrencies.

The regulation aims to ensure that NFA members and associate members engaged in digital asset commodity activities follow anti-fraud, fair and equitable trading principles and regulatory requirements.

The rule currently only applies to bitcoin and ethereum, and requires members to closely monitor their business activities. Members engaging in spot crypto commodity activities “must adopt and implement appropriate regulatory policies and procedures.” The new compliance rules will take effect on May 31, 2023.

NFA is a self-regulatory organization, created by the U.S. Congress in 1974, authorizing the establishment of the Commodity Futures Trading Commission (CFTC), providing opportunities for the industry to establish self-regulatory organizations.

CFTC designated NFA as a “registered futures association” on September 22, 1981, and began its regulatory operations in 1982.

The NFA’s move is an important step towards increasing transparency and security in the cryptocurrency industry, which has long been associated with fraudulent activity.

As more individuals and companies invest in cryptocurrencies, regulators must take aggressive steps to curb fraudulent activity and keep investors safe.

The move also sends a strong message to other regulators and industry players that the NFA is committed to ensuring the integrity of the cryptocurrency market.

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Filed under: Bitcoin - @ April 3, 2023 2:14 pm