Quantum Updates 57: Global Crypto Regulatory and Enforcement Updates | September 2025

United States SEC Crypto Task Force to Host Roundtable on Financial Surveillance and Privacy

On 8 September 2025, the United States Securities and Exchange Commission (US SEC) announced that its Crypto Task Force will host a public roundtable on financial surveillance and privacy. The event will take place on 17 October 2025 from 1 p.m. to 4 p.m. at US SEC headquarters in Washington, D.C., with livestream access on SEC.gov. The roundtable follows the Spring Sprint Toward Crypto Clarity discussions, the President’s Executive Order on Digital Assets, and the President’s Working Group on Digital Assets report. Directed by Commissioner Hester M. Peirce, the initiative will promote United States leadership in digital assets and financial technology while safeguarding economic liberty. Experts in privacy-preserving technologies will join policymakers to examine frameworks for balancing surveillance powers with individual privacy rights.

• The United States Securities and Exchange Commission stated that the roundtable will convene innovators in privacy-preserving technology alongside regulators assessing surveillance frameworks.
• Commissioner Hester M. Peirce stated that privacy-preserving tools empower individuals to protect sensitive data and avoid exploitation by malicious actors.
• Commissioner Peirce emphasised that understanding these technologies will help the US SEC and financial regulators design sound policy frameworks for the crypto economy.
• The US SEC roundtable will build on its broader mission of clarifying regulatory boundaries, disclosure standards, and enforcement in the digital asset sector.
• The Crypto Task Force, established on 21 January 2025 under Acting Chairman Mark T. Uyeda, continues to provide pathways to registration and engage the public on crypto-related issues.
• The agenda will include panel discussions on privacy-enhancing technologies, financial surveillance, consumer protection, and implications for crypto transactions.
• For exchanges, custodians, and digital asset service providers, the roundtable signals heightened scrutiny of privacy tools within compliance frameworks.
• Entities should prepare for possible new disclosure standards addressing how financial surveillance is managed and reported in digital markets.
• The roundtable reflects broader geopolitical debates, as global regulators from the European Union to Asia also weigh the balance between surveillance powers, anti-money laundering rules, and privacy rights in decentralised markets.
• Registration is required for in-person attendance, while the livestream will be publicly accessible. Recordings and details of the agenda and speakers will be posted on the US SEC’s Crypto Task Force webpage.

To read this news in detail click here

 

Hong Kong SFC and ADBI Convene Roundtable on Sustainable Finance Instruments in Asia

On 9 September 2025, the Hong Kong Securities and Futures Commission (HK SFC) and the Asian Development Bank Institute (ADBI) co-hosted a roundtable during Hong Kong Green Week to advance sustainable finance across Asia-Pacific markets. The event brought together senior officials from twelve jurisdictions under the Asian Climate Finance Dialogue Project, alongside representatives from the Asian Development Bank and private sector experts. Discussions focused on frameworks for transition finance, climate-related disclosures, and scaling thematic investment mechanisms such as green bonds, blue bonds, and ESG-linked funds. The session marked the fifth roundtable of the Asian Climate Finance Dialogue Project, reinforcing momentum in cross-border regulatory collaboration to mobilise capital for Asia’s low-carbon transition.

• The Hong Kong Securities and Futures Commission confirmed that “sustainable-related thematic instruments” include green bonds, blue bonds, and environmental, social and governance (ESG) funds.
• The roundtable described “transition finance” as frameworks and mechanisms enabling the effective mobilisation of private capital to support decarbonisation goals.
• Senior officials from twelve jurisdictions, including India, Japan, Korea, Indonesia, the Philippines, Thailand, and Vietnam participated.
• The Asian Development Bank Institute and Asian Development Bank elaborated on the importance of climate-related disclosures and policy alignment to encourage investment flows into sustainable instruments.
• The session marked the fifth Asian Climate Finance Dialogue Project roundtable, a platform for advancing climate finance innovation and coordination across Asia.
• The Hong Kong SFC stated that convening global and regional stakeholders during Hong Kong Green Week reinforced the city’s role as a hub for sustainable finance policymaking.
• The initiative reflects growing regional consensus on integrating sustainable finance into capital markets while ensuring comparability with international standards.

To read this news in detail click here

 

Hong Kong SFC Fines Instinet Pacific Limited HK$8 Million for Cross Trade Reporting Failures

On 8 September 2025, the Hong Kong Securities and Futures Commission (HK SFC) announced disciplinary action under the Statement of Disciplinary Action against Instinet Pacific Limited (Instinet) for persistent failures to report cross trades to The Stock Exchange of Hong Kong Limited (SEHK). Acting under section 194 of the Hong Kong Securities and Futures Ordinance (Cap. 571), the HK SFC imposed a public reprimand and a fine of HK$8 million. The investigation found that between December 2012 and March 2018, Instinet failed to report 8,817 pairs of cross trades worth approximately HK$25.9 billion. These trades, executed between clients and an affiliated company, were not reported to SEHK as required by Rule 526 of the Rules of the Exchange. The HK SFC determined that Instinet had no internal policies or procedures to govern reporting obligations and did not conduct any review of its reporting framework during the period.

• The Hong Kong Securities and Futures Commission confirmed that Instinet failed to report 8,817 pairs of cross trades, involving HK$25.9 billion in value, over five and a half years.
• The regulator found that Instinet had no policies or procedures to ensure compliance with Rule 526 of the Rules of the Exchange or the Code of Conduct for Licensed Corporations.
• The HK SFC noted breaches of General Principle 2 (due skill, care and diligence), General Principle 7 (regulatory compliance), and paragraph 12.1 (maintenance of appropriate compliance measures) of the Code of Conduct.
• Exchange Participants are required under Rule 526 to input cross trade details into the Orion Trading Platform or report them to SEHK within prescribed timelines. Instinet failed to meet this obligation.
• The regulator described the breach as “particularly serious” given its length, scale, and the large number of affected transactions.
• Section 194 of the Hong Kong Securities and Futures Ordinance empowered the HK SFC to impose the fine and public reprimand for failure to comply with regulatory requirements.
• The disciplinary action highlights that licensed corporations must establish robust internal controls, reporting policies, and monitoring systems to comply with Hong Kong’s trade reporting rules.
• For Compliance and avoiding such sanctions, Firms operating in Hong Kong must conduct regular reviews of reporting processes to prevent persistent non-compliance and mitigate regulatory risks.

To read this news in detail click here

 

United States SEC Forms Cross-Border Task Force to Tackle International Fraud

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) announced the creation of a Cross-Border Task Force within its Division of Enforcement. The task force is designed to strengthen the SEC’s ability to investigate and prevent fraudulent conduct by foreign-based companies targeting U.S. investors. According to the Commission, the task force will prioritise cases involving overseas issuers engaged in potential violations of U.S. federal securities laws, particularly market manipulation practices such as “pump-and-dump” and “ramp-and-dump” schemes. The initiative will also scrutinise auditors, underwriters, and other gatekeepers that facilitate foreign companies’ access to U.S. capital markets. By consolidating resources and expertise, the SEC intends to deploy all enforcement tools available to protect U.S. investors from cross-border fraud.

• The United States Securities and Exchange Commission confirmed that the Cross-Border Task Force will initially focus on fraudulent practices by foreign-based issuers seeking access to U.S. capital markets.
• Enforcement priorities include investigating market manipulation schemes such as pump-and-dump and ramp-and-dump activities targeting U.S. investors.
• The Division of Enforcement will also examine gatekeepers, including auditors and underwriters, whose roles are critical in providing market integrity and investor confidence.
• US SEC Chairman Paul S. Atkins welcomed global participation in U.S. markets but warned that the Commission “will not tolerate bad actors… that attempt to use international borders to frustrate and avoid U.S. investor protections.”
• Division of Enforcement Director Margaret A. Ryan stated that the task force will leverage enforcement resources to combat international market manipulation and fraud effectively.
• The SEC identified jurisdictions with limited transparency and higher systemic risk, naming China as an area of concern where state involvement may undermine investor protections.
• Staff across divisions including Corporation Finance, Examinations, Economic and Risk Analysis, and Trading and Markets have been directed to explore further measures, including new disclosure guidance and potential rule changes.
• Issuers and intermediaries with cross-border operations must ensure compliance with U.S. disclosure and reporting standards, strengthen internal controls, and prepare for possible expanded disclosure obligations.
• Participation in U.S. capital markets requires accountability, transparency, and alignment with U.S. investor protection standards.
• The task force reflects wider geopolitical and regulatory challenges, signalling U.S. resolve to confront risks posed by foreign state-controlled enterprises.

To read this news in detail click here

 

United States SEC and US CFTC Announce Joint Roundtable on Regulatory Harmonisation

On 5 September 2025, the United States Securities and Exchange Commission (US SEC) and the United States Commodity Futures Trading Commission (US CFTC) announced plans to co-host a public roundtable on 29 September 2025 at the US SEC headquarters in Washington, D.C. The initiative, unveiled in Joint Statement No. 2025-112, elaborates on a shared vision to harmonise oversight across financial markets. US SEC Chairman Paul S. Atkins and US CFTC Acting Chairman Caroline D. Pham confirmed that the dialogue will focus on product and venue definitions, streamlined reporting standards, aligned capital frameworks, and coordinated innovation exemptions. The roundtable builds on the agencies’ joint staff statement issued on 3 September 2025 regarding spot crypto asset products, reflecting a growing commitment to reduce duplication, regulatory gaps, and compliance uncertainty in U.S. markets.

• The United States Securities and Exchange Commission and the United States Commodity Futures Trading Commission confirmed that the joint roundtable will take place on 29 September 2025, webcast live for public access.
• The agencies emphasised that decades of overlapping rules have created duplication and uncertainty, making harmonization a critical step for efficiency and investor protection.
• Product and venue definitions will be examined to ensure consistent treatment across securities and derivatives markets.
• Reporting and data standards will be reviewed to reduce duplication, improve clarity, and lower compliance costs for market participants.
• Capital and margin frameworks will be discussed with the aim of aligning risk safeguards across regulatory regimes.
• Coordinated innovation exemptions will be considered, signalling a willingness to provide structured relief for new financial and digital products before imposing permanent rules.
• US SEC Chairman Paul S. Atkins and US CFTC Acting Chairman Caroline D. Pham stated that harmonisation will enhance market stability while supporting innovation in financial markets.
• The joint effort follows the 3 September 2025 joint staff statement on spot crypto asset products, reinforcing coordinated engagement in the digital asset space.
• The roundtable agenda will be published on the US SEC’s event webpage, with registration required for in-person participation.
• A recording of the event will be made available on the US SEC website following the session.

To read this news in detail click here

 

Australia High Court Grants ASIC Special Leave to Appeal Block Earner Licensing Decision

On 5 September 2025, the High Court of Australia granted the Australian Securities and Investments Commission (ASIC) special leave to appeal the Full Federal Court ruling in the Block Earner case. The Full Federal Court had previously held that Block Earner, a digital asset service provider, did not require an Australian Financial Services Licence (AFSL) to offer its fixed-yield crypto product. ASIC is now seeking authoritative clarification of the statutory definition of “financial product” under the Australian Corporations Act 2001 (Cth), with a focus on interest-earning and asset-conversion products. The High Court’s ruling will have consequences not only for crypto-linked yield products but also for traditional financial arrangements, given the technology-neutral drafting of the law.

• The High Court of Australia confirmed that ASIC may proceed with its appeal, on the condition that it covers Block Earner’s costs of the proceedings.
• ASIC’s position is that fixed-yield crypto products like Block Earner’s “Earner” fall within the statutory scope of financial products, requiring an AFSL and compliance with disclosure and conduct rules.
• The Full Federal Court in April 2025 dismissed ASIC’s appeal and upheld Block Earner’s cross-appeal, ruling that the product was not a financial product under the Corporations Act 2001 (Cth).
• The High Court’s consideration is expected to set a precedent on whether crypto yield products are regulated financial products or remain outside ASIC’s direct jurisdiction.
• The outcome could expand the reach of AFSL obligations across yield-bearing and asset-conversion products, or alternatively, cement a regulatory gap that leaves certain digital products unlicensed.
• ASIC emphasised that the statutory definition of financial product was designed to be broad and technology-neutral, capturing both crypto-linked and traditional interest-earning products.
• The ruling will directly affect compliance obligations for digital asset issuers, custodians, and exchanges, while also shaping the licensing perimeter for conventional financial services.
• The appeal is a critical test case in balancing regulatory clarity with innovation, investor protection, and the scope of ASIC’s enforcement mandate.
• Broader implications extend to global markets, as the case elaborates on how Australian courts approach the classification of novel digital financial products within established legal definitions.
• For market participants, the decision reinforces the importance of preparing compliance frameworks in anticipation of judicial expansion of the AFSL regime.

Chronological Background

• 23 November 2023: ASIC filed civil penalty proceedings against Block Earner.
• 9 February 2024: Federal Court found unlicensed conduct in relation to the Earner product.
• 4 June 2024: Court relieved Block Earner from penalties; ASIC appealed.
• 9 July 2024: Block Earner cross-appealed the licensing requirement.
• 22 April 2025: Full Federal Court upheld Block Earner’s cross-appeal.
• 21 May 2025: ASIC sought special leave to appeal to the High Court.
• 5 September 2025: High Court granted ASIC special leave, conditional on covering costs.

To read this news in detail click here

 

Australia ASIC Signs MoU with India IFSCA to Strengthen Financial Services Cooperation

On 4 September 2025, the Australian Securities and Investments Commission (ASIC) signed a Memorandum of Understanding (MoU) with the International Financial Services Centres Authority (IFSCA) of India in Sydney. The agreement was executed by ASIC Chair Joe Longo and IFSCA Chair Shri K Rajaraman in the presence of senior officials from both countries. The MoU aims to deepen cooperation between the two jurisdictions in supervisory coordination, regulatory compliance, information sharing, and the use of technology in financial markets. According to ASIC, the arrangement reflects a shared commitment to trust, transparency, and innovation. It is expected to strengthen market resilience in Australia and India and support cross-border alignment in the Asia-Pacific financial ecosystem.

• The Australian Securities and Investments Commission confirmed that the MoU creates a formal channel for cooperation with the International Financial Services Centres Authority.
• The framework covers information exchange on financial market trends, regulatory standards, and best practices in supervision and enforcement.
• Both regulators will collaborate on adopting technology in financial markets and developing digital compliance solutions.
• ASIC Chair Joe Longo stated that the agreement “reinforces our shared values and vision that is future focused and grounded in mutual trust.”
• IFSCA Chair Shri K Rajaraman emphasised that the engagement highlights “dynamic ties between our countries” and a commitment to supporting strong financial ecosystems.
• The MoU provides a structure for enhanced supervisory alignment and resilience, strengthening investor protection and regulatory effectiveness in both jurisdictions.
• For financial institutions, fintech firms, and service providers operating across Australia and India, the agreement is expected to streamline compliance processes and reduce barriers to cross-border operations.
• Market participants should anticipate stronger supervisory expectations, expanded information sharing, and increased adoption of technology-driven compliance frameworks.
• The partnership aligns with broader Asia-Pacific efforts to create trusted, resilient, and digitally enabled financial markets.

To read this news in detail click here

 

Hong Kong SFC Suspends Former Agg. Asset Management Officer for 12 Months over Fund Mismanagement

On 4 September 2025, the Hong Kong Securities and Futures Commission (HK SFC) announced the suspension of Mr Chow Tsz Lam, former responsible officer (RO) and Manager-in-Charge (MIC) of Agg. Asset Management Limited, for 12 months under section 194 of the Hong Kong Securities and Futures Ordinance (Cap. 571). The suspension runs from 2 September 2025 to 1 September 2026. The disciplinary action followed findings that Agg invested between 88.83% and 100% of a Cayman-incorporated fund’s assets in debentures issued by companies owned by Agg’s sole shareholder, Ng Ka Shun. The HK SFC in its Statement of Disciplinary Action found that these arrangements created unmanaged conflicts of interest, exposed investors to material risks, and inflated the fund’s net asset value (NAV) through questionable structures. Chow, despite being fully aware of the debenture transactions, failed to act in his roles as RO and MIC for compliance, AML/CTF, and risk management.

• The Hong Kong Securities and Futures Commission determined that Chow breached General Principles 1, 2, 6, and 9 of the Code of Conduct, as well as key sections of the Fund Manager Code of Conduct (FMCC).
• The regulator found that Agg allowed Fund A to subscribe to five debentures between February 2018 and February 2019, issued by entities owned by Ng Ka Shun, which at times represented nearly the fund’s entire portfolio.
• Shortly after US$4.25 million in subscriptions were received, over US$4.1 million was withdrawn by Ng as personal loans, exposing investors to severe risk and undermining fiduciary duties.
• Two debentures, issued by Agg 1 and Agg 2, were structured to inflate NAV by booking a “Corporate Commitment Fee” and “Corporate Guarantee” as cash equivalents without commercial basis.
• The HK SFC concluded that Chow failed to ensure conflicts were identified, managed, or disclosed, despite being directly aware of debenture structures and their impact on valuations.
• As MIC for compliance and risk oversight, Chow failed to establish or enforce adequate systems for risk management, conflict handling, and accurate valuation controls.
• The disciplinary action emphasised that senior management cannot avoid accountability by delegating decisions and must actively safeguard investor interests.
• Under Hong Kong’s regulatory framework, asset managers are required to maintain effective risk management systems, ensure NAV integrity, and implement safeguards against conflicts of interest.

To read this news in detail click here

 

United States SEC Institutes Administrative Proceedings Against Agri-Fintech Holdings for Filing Delinquencies

On 3 September 2025, the United States Securities and Exchange Commission (US SEC) published an Order instituting public administrative proceedings against Agri-Fintech Holdings, Inc. (formerly Tingo, Inc.), a Nevada corporation. The company has not filed any periodic reports since June 2023, violating Section 13(a) of the United States Securities Exchange Act of 1934 and related rules. The proceedings, brought under Section 12(j) of the United States Securities Exchange Act, will determine whether the registration of the company’s securities should be suspended or revoked. Revocation would terminate the company’s ability to access US public markets. The US SEC stated that these actions are necessary to protect investors who lack access to accurate and timely disclosures.

• The United States Securities and Exchange Commission confirmed that Agri-Fintech Holdings failed to file required periodic reports since its Form 10-Q for the quarter ending 30 June 2023.
• That filing reported a net loss of $11.2 million, after which the company ceased submitting quarterly and annual disclosures.
• Under Section 13(a) of the United States Securities Exchange Act and Rules 13a-1 and 13a-13, public issuers must file annual and quarterly reports to maintain registration.
• The US SEC alleges that Agri-Fintech’s failure has deprived investors of transparency, breaching obligations critical for market integrity.
• The company’s securities, registered under Section 12(g) of the Exchange Act, are not currently publicly quoted or traded.
• Administrative proceedings were instituted under Section 12(j), allowing the US SEC to suspend trading for up to twelve months or revoke registration entirely.
• If registration is revoked, Agri-Fintech Holdings would be barred from trading in US public markets, effectively cutting off investor access.
• The order requires the respondent to file an Answer within ten days; a prehearing conference must occur within fourteen days.
• Failure to respond may result in default, with the allegations deemed admitted, fast-tracking suspension or revocation.

To read this news in detail click here

 

United States CFTC Issues No-Action Relief for QCX Event Contracts

On 2 September 2025, the United States Commodity Futures Trading Commission (US CFTC) issued CFTC Letter No. 25-28, granting no-action relief to QCX LLC, a designated contract market, and QC Clearing LLC, a registered derivatives clearing organization. The relief applies to fully collateralised binary option contracts and variable payout contracts executed under QCX rules. The US CFTC’s Division of Market Oversight and Division of Clearing and Risk confirmed that staff will not recommend enforcement actions for failure to comply with certain swap reporting and recordkeeping requirements. The relief mirrors earlier no-action positions granted to other market operators and shows the regulator’s willingness to accommodate innovative contract structures within a supervised framework.

• QCX LLC and QC Clearing LLC requested no-action relief from swap data reporting and recordkeeping obligations under Sections 38.8(b), 38.10, 38.951 (in part), 39.20(b)(2), and Parts 43 and 45 of the United States CFTC regulations.
• The contracts in question include fully collateralised binary contracts, with all-or-nothing settlement, and variable payout contracts, with pro-rated settlement based on final price.
• Although these contracts technically fall within the definition of “swaps” under the United States Commodity Exchange Act, QCX argued that they are functionally closer to exchange-traded options on futures.
• The United States CFTC agreed that full swap reporting may not align with the market structure of QCX’s products.
• Relief is conditional on compliance with safeguards, including:
  • All contracts must remain fully collateralised under Regulation 39.2.
  • Clearing must occur exclusively through QC Clearing LLC.
  • QCX must promptly publish trade data (timestamp, contract, quantity, price) on its website.
  • QCX must provide transaction data to the United States CFTC under Regulation 16.02.
  • Records must remain open for inspection by the United States CFTC, the Department of Justice, the United States Securities and Exchange Commission, or prudential regulators.
• The no-action relief does not represent a binding Commission determination but reflects staff discretion, limited to QCX’s compliance with stated conditions.

To read this news in detail click here

 

United States SEC and CFTC Issue Joint Staff Statement on Spot Crypto Asset Trading

On 2 September 2025, the United States Securities and Exchange Commission (US SEC) Division of Trading and Markets and the United States Commodity Futures Trading Commission (US CFTC) Divisions of Market Oversight and Clearing and Risk released a joint staff statement under Project Crypto and the Crypto Sprint. The initiative will coordinate cross-agency efforts on enabling spot crypto asset trading in the United States, drawing on the President’s Working Group on Digital Asset Markets (PWG Report). The joint clarification provides exchanges, clearinghouses, and custodians with a unified framework, ensuring that innovation remains within U.S. regulatory oversight while preserving investor protection.

• The joint staff statement confirms that U.S. law does not prevent SEC-registered national securities exchanges (NSEs) or CFTC-registered designated contract markets (DCMs) from listing spot crypto asset products.
• Under the Commodity Exchange Act, leveraged, margined, or financed retail commodity transactions must be conducted on a CFTC-registered DCM or a foreign board of trade (FBOT), unless listed on an SEC-registered NSE.
• The clarification expands venue choice for U.S. market participants by recognising NSEs, DCMs, and FBOTs as permissible venues for spot crypto asset trading.
• The US SEC and US CFTC emphasised enhanced surveillance and monitoring, including cross-venue sharing of reference pricing data and transparent public dissemination of trade data.
• Clearinghouses partnering with custodians to maintain customer accounts may seek guidance from the SEC’s Division of Trading and Markets or the CFTC’s Division of Clearing and Risk.
• The statement is in the wake of efficient executions, transparent processes, and robust investor safeguards as core conditions for innovation in spot crypto markets.
• By reducing interpretative divergence, the US SEC and US CFTC aim to lower regulatory uncertainty, encouraging exchanges to file proposals to list crypto products under a harmonised approach.
• The initiative is part of Project Crypto and the Crypto Sprint, signalling continued alignment between both regulators to integrate blockchain innovation into U.S. capital markets.

To read this news in detail click here

 

US CFTC and SEC Staff Clarify Rules on Trading of Spot Crypto Asset Products

On 2 September 2025, staff of the United States Commodity Futures Trading Commission (US CFTC) and the United States Securities and Exchange Commission (US SEC) issued a joint statement confirming that exchanges registered with either regulator are not prohibited from facilitating the trading of certain spot crypto asset products. The clarification marks a coordinated regulatory approach aimed at strengthening U.S. market confidence, expanding venue choice for participants, and reinforcing the country’s role in digital asset innovation.

• The joint statement confirms that trading of spot crypto asset products can occur on U.S. SEC-registered national securities exchanges (NSEs) or U.S. CFTC-registered designated contract markets (DCMs).
• Staff from both agencies emphasised that regulatory frameworks already provide sufficient pathways for registered venues to facilitate spot crypto asset trading under existing laws.
• U.S. CFTC Acting Chairman Caroline D. Pham described the initiative as a departure from the “mixed signals” of prior administrations, stating it represents a shift to welcoming innovation in digital asset markets.
• U.S. SEC Chairman Paul S. Atkins said the clarification ensures “market participants should have the freedom to choose where they trade spot crypto assets,” stressing the importance of competition and innovation in market growth.
• The initiative is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, both designed to enhance regulatory clarity while encouraging responsible innovation in blockchain-based markets.
• The joint statement also builds on recommendations from the President’s Working Group on Digital Asset Markets report Strengthening American Leadership in Digital Financial Technology, which urged regulators to use existing powers to foster blockchain innovation within the United States.
• By aligning messaging and regulatory expectations, the US SEC and US CFTC seek to provide certainty to exchanges, clearinghouses, and custodians operating in U.S. markets.
• The coordinated approach is intended to reduce regulatory fragmentation, promote investor protection, and ensure that crypto innovation develops under U.S. oversight rather than shifting offshore.

To read this news in detail click here

 

United States CFTC Issues Advisory Clarifying FBOT Registration for Non-U.S. Exchanges

On 28 August 2025, the United States Commodity Futures Trading Commission (US CFTC), through its Division of Market Oversight, issued an advisory clarifying the registration framework for foreign boards of trade (FBOTs). The guidance confirms that non-U.S. exchanges providing direct access to U.S. participants must operate under FBOT registration, a system covering all asset classes, including derivatives and crypto markets. The advisory restores certainty after recent enforcement actions created confusion over whether certain platforms needed to register as U.S.-based designated contract markets (DCMs) or as FBOTs.

• The advisory reaffirms that FBOT registration remains the established route for non-U.S. exchanges legally organised and operating abroad that seek to provide trading access to American participants.
• Unlike DCMs, which are U.S.-based exchanges, FBOT registration allows foreign venues to continue operating outside the United States while falling under US CFTC oversight.
• US CFTC Acting Chairman Caroline D. Pham described the advisory as restoring clarity after years of “regulation by enforcement,” which drove some American-linked crypto trading activity offshore.
• Pham stated: “The CFTC welcomes back Americans that want to trade efficiently and safely under CFTC regulations, and opens up U.S. markets to the rest of the world.”
• The advisory highlights that FBOT registration applies across asset classes, explicitly extending to digital asset and crypto derivatives markets.
• The US CFTC acknowledged that enforcement-driven interpretations had left issuers and market operators uncertain about the correct registration path, leading to disruption in cross-border access.
• By reaffirming FBOT registration as the cornerstone framework, the US CFTC seeks to restore predictability, reduce compliance risk, and strengthen investor protection.
• For U.S. traders, the development ensures continued access to global liquidity pools under CFTC oversight. For non-U.S. exchanges, it provides a clear legal path to serve American participants without restructuring operations.
• The initiative also forms part of the US CFTC’s broader “crypto sprint,” designed to integrate digital asset markets into established regulatory frameworks while supporting cross-border innovation.

To read this news in detail click here