FBOT registry won't bring offshore crypto exchanges to the US — Attorney
The Foreign Board of Trade (FBOT) framework is designed for the legacy financial system and is a poor fit for cryptocurrency exchanges.
The recent Commodity Futures Trading Commission (CFTC) advisory on offshore exchanges serving US residents under the Foreign Board of Trade (FBOT) framework won’t bring offshore crypto exchanges back to the US, according to Eli Cohen, general counsel at real-world asset (RWA) tokenization company Centrifuge.
Cohen told Cointelegraph that settlement, clearing, and other regulatory requirements designed for the traditional financial system, required to serve US clients under the FBOT framework, are not tailored for crypto exchanges and will be difficult or impossible to fulfill.
The CFTC’s guidance also stipulated that only Licensed Futures Commission (FCM) exchanges, which are broker-dealers for futures contracts, and other highly regulated entities, are qualified to apply under the FBOT framework, Cohen said. He added:
Read more
