34 Crypto and Forex Entities Enter US Red List

34 Crypto and Forex Entities Enter US Red List

July 16, 2022 0 By Jeanine Sanchez

The crypto sector just received another hard blow. The United States Commodity Futures and Trading Commission put 34 companies on its RED List. The 34 forex and crypto firms made the list because they are not duly registered.

The CFTC and New Entries

The US is working hard to regulate the crypto sector through agencies like the CFTC. Some policies are expected to be rolled out later this year.

The crypto market has been battling with price actions and decline for several months. There has been not so much significant improvement. The US CFTC has now added 34 foreign firms to its Registration Deficiency List.

The latest news is one that will reverberate quite strongly in the market. Being on the list, however, does not amount to breaking any law. It is rather a warning to other firms to beware of fraud.

The latest firms added to the CFTC RED list include Cent Projects and Algobit Ltd. Others are Alis Capital Inc., B.O Tradeinancials, CloseOption, CryptoBO, CryptoSphereFX, Bitplay Options, and DestroFX. It still goes on to include Bluegate Financial Services, Capital Forex Trade, and Direct Cryptos.

Capital Trading Hub, Capitalone Trade, Dynamic FX Trade, Expirex Trade, QuickFXTrade, FXBrew were also included. It goes on to include FX Optimism, FX-Cryptex, Renesource Capital, SageFX, Stockinvestmentfx, Hanko Trade, IQFXTrade, Menne Market Ltd, and Swissglobaltrade.

The traders affected are Octave Trade, Domain, Tifu Global Ltd, TradingDeskFX, Pocketoption, Wolves Trade FX, and Prime Crypto FX.

The US is Clamping Down on Binary Options

The CFTC notice gave reasons why entities might have been on the list. It is majorly not duly registering with the agency while engaging binary options and forex. It, therefore, makes most of these platforms illegal.

Both the European Union and the United Kingdom have placed a ban on trading binary options.

The CFTC notice says a firm gets on the RED List when the agency determines. This determination, however, follows investigations and public inquiries that prove it is not registered. It says the Commodity Exchange Act requires intermediaries to register with the CFTC.

Many of the platforms have shut down operations since appearing on the list. There are currently more than 200 entities placed on the RED List. The CFTC, on the other hand, is not slowing down where regulations are concerned.

The CFTC is working with other agencies to clamp down on firms in the crypto market. The world is watching closely might take a cue from the US.