Some of Bitcoin enthusiast
Mike Caldwell's coins and paper vouchers, often called "paper
wallets", are pictured at his office in this photo illustration
in Sandy, Utah, January 31, 2014.
(Reporting by Douwe Miedema; editing by Andrew Hay)
WASHINGTON (Reuters) - TeraExchange said on Monday it had constructed a swap based on the bitcoin virtual currency, a step that would bring the emerging payment system under the oversight of U.S. regulators for the first time.
The company said it had shown the contract to the U.S. Commodity Futures Trading Commission, which regulates swaps and futures. If transacted by the counterparties, the contract would need to be reported to the agency.
Ultimately, TeraExchange plans to list the bitcoin swap on its Swap Execution Facility (SEF), a new type of regulated platform that was set up after the credit crisis to make swaps trading more transparent, less risky, and cheaper.
The company was given a license to run a SEF last year, but no trading has taken place on the platform yet.
Bart Chilton, who stepped down from his position as a member of the CFTC on Friday, told Reuters last week that companies had inquired in the past month about regulations that would govern exchanges for bitcoin derivatives.
Read the original article on Reuters. Copyright 2014. Follow Reuters on Twitter.
The novelty of the bitcoin currency has made it hard to categorize, but trading derivatives such as futures or swaps would subject companies to oversight by the CFTC.
Regulators have stepped up their efforts to rein in bitcoin after incidents such as the collapse of Mt. Gox, a Tokyo-based exchange that filed for bankruptcy after losing an estimated $650 million worth of customer bitcoins.
By Douwe Miedema
The contract, created on behalf of two clients, was a bilateral swap privately negotiated between them. The counterparties had not acted on the agreement, but were expected to do so soon, the company said.
Jiang Zhuoer: BTC.Top Will Support the Camp Favored by a Majority of Hash Power in the Bitcoin Cash Hash War
Jiang Zhuo’er and his BTC.TOP , a major Chinese mining pool, will not take side in the upcoming Bitcoin Cash’s hash war between two competing camps, Bitcoin ABC and Bitcoin SV. Zhuo’er shared h
F2Pool Will Support the Mining of BCHABC and BCHSV after Bitcoin Cash Hard Fork
F2Pool, the sixth largest bitcoin mining pool in the world, announced on Tuesday that it will allow miners to mine both coins generated from the upcoming Bitcoin Cash hard fork after the chain split
IBM Says Blockchain Can Power 'Open Scientific Research' in New Patent Filing
A patent application published Thursday claims the process of conducting scientific research can benefit from the blockchain.
Led by a team at IBM's Watson Research Center, the patent application p
CFTC Fines Bitcoin Trader $1.1 Million for Crypto Fraud
The U.S. Commodity Futures Trading Commission (CFTC) has jailed a bitcoin trader and fined him over $1 million for running a fraudulent bitcoin and litecoin scheme.
According to a press release iss
Japanese Firms Claim Success in Marine Insurance Blockchain Trial
One of Japan's largest insurance companies, Tokio Marine & Nichido Fire Insurance, and IT firm NTT DATA have completed a trial that put the paperwork for marine cargo insurance claims on a blockchain.
Accenture Puts Software License Management on a Blockchain Platform
Global professional services giant Accenture has rolled out a new software license management application built with tech from distributed ledger startup Digital Asset.
Accenture announced in a pre
Singapore's Central Bank, SGX Develop Blockchain Settlement System
The Monetary Authority of Singapore (MAS) and the country's stock exchange, Singapore Exchange (SGX), have developed a settlement system for tokenized assets that can work across different blockchains
Colorado Regulators Crack Down on Four More ICOs
Colorado regulators took action against four ICOs Thursday, bringing the state's total number of cease-and-desist orders against crypto startups to 12.
The state's "ICO Task Force" rebuked Bitcoin