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The U.S. Commodity Futures Trading Commission (CFTC) has fined Hong Kong-based bitcoin exchange, Bitfinex for the provision of illegal off-exchange financed retail commodity transactions in bitcoin and other cryptocurrencies. According to the U.S. regulator, the company should have been registered as a Futures Commission Merchant (FCM) in order to provide its services in the U.S.
The fine amounts to $75,000 with Bitfinex agreeing to cease and desist from future violations of the Commodities Exchange Act.
Bitfinex has been allowing its clients to borrow funds from other peers and engage in leveraged transactions. The violations have been ongoing between April 2013 to at least February 2016. According ... (read more)