CFTC Expands Registration Deficient List: 34 New Unregistered Entities, Including Crypto Services

CFTC and the RED List Explained

The United States Commodity Futures Trading Commission (CFTC) recently took a significant step by adding 34 new unregistered foreign entities to its Registration Deficient List, popularly known as the RED list. This list serves as a warning beacon for investors in the U.S., particularly in the domain of cryptocurrency, which tends to attract a fair share of fraud complaints.

The New Additions

Among those newly minted transgressors on the RED list, six of them offer crypto-related services. The offenders include:

• B.O TradeFinancials
• CryptoBO
• Bitpay Options
• CryptoSphereFX
• Direct Cryptos
• Prime Crypto FX

It seems like a crypto party went off without a guest list!

Why You Should Care

Why should you heed this warning? According to CFTC Commissioner Kristin Johnson, engaging with these unregistered entities could put you at risk. Lacking the protections that come with CFTC registration, customers might find themselves navigating a minefield of potential fraud and losses. So, unless you enjoy living dangerously, it’s time to stick to the registered crowd.

A Brief History of the RED List

Since its inception in 2015, the RED list has grown, now featuring a total of 202 companies. The CFTC uses this list to empower investors, marking a clear territory where caution is advised. The message is crystal: investing without knowing who you’re dealing with is like eating the mystery meat at a diner—you might end up regretting it.

The Regulatory Jungle

The CFTC, alongside its partner in oversight, the Securities and Exchange Commission (SEC), remains one of the few government bodies with the authority to act against rogue crypto firms. However, the ever-evolving landscape of digital assets is far from straightforward. With regulations resembling a jigsaw puzzle with missing pieces, industry experts are advocating for a more coherent framework to guide businesses operating in the U.S. cryptocurrency market.

In June, lawmakers even introduced a bill to delineate responsibilities between the SEC and CFTC, hoping to provide a clearer path through the regulatory labyrinth.