NFA Interpretation Notice on Virtual Currency Involvement

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On 20 July, the National Futures Association (NFA) presented a proposal for an interpretative communication concerning the disclosure requirements for NFA members engaged in virtual currency assets to the Commodity Futures Trading Commission ]. The new disclosure obligations will apply to all NFA members engaged in transactions in virtual derivatives and virtual currency, as well as in other assets in underlying or punctual virtual currencies.

The proposed interpretative communication addresses the concerns of the NFA that investors may not fully understand the nature of virtual currencies and derivatives on virtual currencies, the substantial risk of loss that could result from the exchange of such products and the limitations of Regulatory authority of the NFA on the spot market in virtual currencies.

NFA is invoking the "ten days" clause of Section 17 (j) of the Commodity Exchange Act and plans to make this Notice of Interpretation effective 10 days after filing with the CFTC, unless the CFTC notifies you. NFA having decided to review the proposed Interpretation Notice for approval.

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