Swiss-based XBT Corp, or First Global Credit (FGC), has been ordered to pay USD 100,000 fine by the CFTC for Commodity Exchange Act.
This was due to violations for bypassing Futures Commission Merchant (FMC) registration requirements.
So the company have been fined for failing to register with the regulator as a futures commission merchant before participating in transactions as one.
XBT used to do business under another company called First Global Credit and it failed to register with the CFTC.
The customers could use BTC as collateral to invest in margin trading for futures. While this action is not necessarily illegal, the fact is that doing this while not informing the CFTC is, as it violates Section 4d(a)(1) of the regulator’s code.
The company also blatantly advertised their services and they have not commented on the situation. The CFTC’s rules are taken very seriously in the industry.
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