CFTC posts smart-contract guideline

Posted 28 November, 2018

The research and development department of the US Commodity Futures Trading Commission LabCFTC reportedly presented to the public the regulator's official smart-contract guidelines.

The document represents the guidelines which cover both advantages and risks that smart-contracts can entail. Moreover, the regulator noted that the users must fulfil the relevant responsibilities no matter whether they use smart-contracts or not.

"Existing law and regulation apply equally regardless what form a contract takes. Contracts or constituent parts of contracts that are written in code are subject to otherwise applicable law and regulation," reads the guideline.

It is worth mentioning that the compliance with the regulators' requirements can be built-in the smart contract, and thus illegal actions would be just impossible.

In addition, LabCFTC thinks that companies can apply smart-contracts to automate trading. In particular, their feature "stop-loss" cancels the transaction in case of the price falling specified level. This can be attractive for companies dealing with financial derivatives.

In general, smart contracts' automatization feature will save money and time, meanwhile process standardization eliminate unnecessary discussions between the parties.

Still, the authority believes that smart-contracts can reduce market transparency, while technical problems can be used for fraud schemes and manipulations.

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28 November, 2018 18:09

← OKEx announces new unit for detecting vulnerabilities

On Wednesday, OKEx announced one more new initiative aimed at the detecting potential problems of the exchange with the rewards for the reports about them. The new initiative will be called OKEx Security Response Centre, while the users will be the main element of this vulnerability tool. Specifically, they will be able to send the reports about any functional problems at the site, applications or other services offered by the platform.

OKEx announces new unit for detecting vulnerabilities

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28 November, 2018 14:08

Coinbase puts into service OTC trading branch →

The major crypto trading platform – Coinbase – plans to set up an OTC business seeing strong demand from institutional investors. As the head of sales at Coinbase Christine Sandler said during the interview with Cheddar, the new business division is believed to be a good supplement to their main business. Coinbase is said to consider service expansion with plans to add deferred payments and even possible integration of Coinbase Custody service into the new OTC platform. The custodial business is mainly designed for hedge funds, exchanges, ICO companies and other large market players. 

Coinbase puts into service OTC trading branch
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