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CFTC Releases Guidelines About ‘Actual Delivery’ of Digital Assets

Vandana Malik by Vandana Malik - 11:59 PM Mar 25, 2020
CFTC Releases Guidelines About ‘Actual Delivery’ of Digital Assets

The Commodity Futures Trading Commission (CFTC) which is a U.S. derivative regulator has released guidelines for crypto derivatives markets. These guidelines will tell users about cryptocurrency futures and trading in the market.

A set of things have been described in the guidelines which will explain different penalties and fines that might be there on traders. It ascertains all the traders of the fines and penalties which they would have to face if they do not let the buyers take control over their coins within 28 days. Through this, the buyers will be able to take physical possession over their assets easily.

Bitcoin and Ether considered commodities by CFTC

These rules are for those traders and exchanges who do not trade under CFTC regulated guidelines. Under these rules, the traders will have to deliver the physical commodities to the buyers.

It is also implied on the traders whose buyers or investors are using margins to leverage bets constantly. According to CFTC, both Ether and Bitcoin are considered as commodities. Any derivatives that will come under both these digital currencies will be governed by jurisdiction.

There will be a huge impact on all those traders or exchanges which are offering huge margin loans without changing it to currency. 

Actual delivery of assets indicates the ability of the investor

According to the statement released by CFTC, the actual delivery is there to indicate the ability of the investors. It is the ability that let the consumer utilize the currency which has been purchased as a medium of exchange.

The actual delivery of the digital assets will also occur if the customers will take possession of assets irrespective of how it has been purchased.

Through these guidelines, the regulatory is hoping that through the determination of actual delivery in the whole virtual currency, the physical settlement will occur. This settlement will include the whole amount of every commodity that has been purchased.

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About The Author
Vandana Malik

Vandana MalikAn enthusiastic content writer, earlier worked as a sub-editor at Business News and Information Services Private Limited. I've done Master of Arts in English from Graphic Era Hill University, Dehradun.

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