CFTC Slaps XBT Corp with a $100,000 Penalty For Failing To Register as a Futures Commission Merchant

Swiss-based XBT Corp, or First Global Credit (FGC), ordered to pay $100,000 fine by the CFTC for Commodity Exchange Act violations due to bypassing Futures Commission Merchant (FMC) registration requirements.

The U. S. Commodity Futures Trading Commission (CFTC) has recently announced that XBT Corp. SARL would be fined $100,000 USD for failing to register with the regulator as a futures commission merchant before participating in transactions as one.

According to the filing, XBT was doing business under another company called First Global Credit and it failed to register with the CFTC before it. Now, the corporation will have to pay the civil monetary penalty and cease from all violations of the act.

The CFTC also informed that the amount of money that XBT had to pay was diminished because the company decided to cooperate with the regulator to remediate the issues that happened. As soon as they were notified, representants from the financial provider complied.

From March 2016 to July 2017, First Global Credit acted as what could be considered a futures commission merchant. It solicited and accepted orders from customers of the country who wanted to buy futures from it. The company went as far as creating a page on its site that was used to assist the customers to participate in these unregulated transactions.

By using the services provided by the companies, they could use BTC as collateral to invest in margin trading for futures. While the action is not necessarily illegal, the fact is that doing this while not informing the CFTC is, as it violates Section 4d(a)(1) of the regulator’s code.

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Silvia A
Silvia A
Though relatively new to the cryptocurrency and blockchain space, Silvia has a strong interest in the field and a love of writing as well. She brings an interesting take to current happenings in the industry and enjoys introducing the latest developments to cryptocurrency and blockchain enthusiasts alike. She’s excited to promote a vibrant and fresh discussion as the industry continues to develop and move forward.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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