The National Futures Association (NFA) in the United States has introduced a new compliance rule aimed at addressing fraud and misconduct by members engaged in activities with Bitcoin and Ether. With over 100 members involved in activities related to digital asset commodities, the National Futures Association (NFA), a regulator of derivatives markets in the US, lacked a mechanism to deal with fraud or misconduct perpetrated by these members.
The new rule, which comes into effect on May 31, complements existing requirements issued in 2018 and imposes guidance on fraud, trade principles, and employee supervision. The rule applies only to Bitcoin and Ether as they alone have related commodity interests certified by a registered entity for listing under Part 40 of CFTC Regulations. The NFA has authority delegated from the CFTC, giving it an analogous status to the Financial Industry Regulatory Authority with the Securities and Exchange Commission.