CFTC Proposed Virtual Currency “Actual Delivery”

CFTC Issues Proposed Interpretation on Virtual Currency “Actual Delivery” in Retail Transactions – RELEASE: pr7664-17

” (…) CFTC (…) Proposed Interpretation sets out the CFTC’s view regarding the “actual delivery” exception that may apply to virtual currency transactions.

(…) The Proposed Interpretation establishes two primary factors necessary to demonstrate “actual delivery” of retail commodity transactions in virtual currency:

(1) a customer having the ability to: (i) take possession and control of the entire quantity of the commodity, whether it was purchased on margin, or using leverage, or any other financing arrangement, and (ii) use it freely in commerce (both within and away from any particular platform) no later than 28 days from the date of the transaction; and

(2) the offeror and counterparty seller (including any of their respective affiliates or other persons acting in concert with the offeror or counterparty seller on a similar basis) not retaining any interest in or control over any of the commodity purchased on margin, leverage, or other financing arrangement at the expiration of 28 days from the date of the transaction.

Last Updated: December 15, 2017″

see original release