The U.S. Commodity Futures Trading Commission (CFTC) will continue to allow New York-based financial technology company Tassat to continue its bitcoin swap contracts after violating regulatory requirements.
According to a statement September 15th the CFTC’s Department of Market Surveillance (DMO), The regulator won’t stop Tassat from launching its Swap Execution Platform (SEF) in Q4 2020. even after the company has not renewed its registration after 12 consecutive months of inactivity.
“The DMO will not advise the CFTC to take enforcement action against Tassat because the SEF registration has not been renewed.” explained the BMD. The decision of the regulatory authority extends to Tassat lists certified Bitcoin (BTC) swap contracts and the participants who trade the contracts.
After applying to become a regulated crypto derivatives exchange before the CFTC in November, Tassat was unable to start its swap exchange until August 1, when the regulator declared the company “inactive”. Tassat allegedly claimed so This oversight was due to the delays caused by the current pandemic and she requested to be exempted from renewing her SEF status.
The decision of the CFTC Relieves Tassat of renewal requirements and brings it closer to launching a cryptocurrency derivative exchange with full regulatory oversight. According to reports The fintech company expects to start adding physically delivered BTC derivatives for institutional investors from the fourth quarter of 2020.
Tassat did not respond to Cointelegraph’s request for comment at the time of publication.