The US definition of crypto coins in general remains unclear. As policymakers solve the relevant cases of crypto coins, the way in which crypto coins will be recognized is gradually becoming clearer.
According to the Press Release of the CFTC, published on October 3, 2018, US District Judge Rya W Zobel is trying to judge Big Coin Pay, the parent company of MyBigCoin.com, a cryptocurrency payment platform filed with fraud and abuse. He authorized the CFTC.
CFTC follows federal charges against digital coin operators
The CFTC indicted Big Coin Pay for violating a number of rules under the Commodity Exchange Act (CEA), including counterfeiting and abuse. In particular, Randall Crater of New York, Mark Gillespie of Michigan and Big Coin Pay are charged with abuse of customer funds through crypto-money trading services.
In the Civil Action document, the CFTC shows that My Big Coin Share is performing a counterfeit crypto-money activity called My Big Coin. Crater allegedly encouraged retail investors to buy tokeni by offering misleading and inaccurate statements about value, use, commercial status and financial support.
Such statements include features such as MBC token that is supported with gold and can be used in stores that accept Mastercard. He was also in the promise of active trading on many crypto money exchanges with token.
When investors purchased token, they could see it in their accounts. But they couldn’t take any shots. They also couldn’t swap their tokens. With the participating members, $ 6 million was earned from the crypto money program. And profits were used to buy antiques, fine arts, jewels, luxury goods, furniture, travel, entertainment services and more.
The US District Court, in agreement with the CFTC, decided that My Big Coin should be considered a commodity as required by the Commodity Exchange Act (CEA). The Court considers it appropriate to define in this way the broad definition of the term commodity, based on the view that the CEA regulations could cover the general market in a comprehensive manner.
The case could be an example the definition of crypto coins by the CFTC
While the US regulations on crypto money remain unclear, the My Big Coin case seems to be in favor of the government. The judicial process of the MBC case is quite important because the CFTC supports the view that crypto coins should be considered commodities as in the case of Mcdonnell earlier this year.
CFTC Information Director James McDonald said about the decision:
This is an important decision that confirms the CFTC’s ability to investigate and combat fraud in the virtual currency markets. This decision recognizes the broad definition of a commodity according to CEA, as in the case of McDonnell from Judge Weinstein in the East of New York. He also acknowledges that the CFTC has the power to investigate fraud related to commodities, including virtual currencies.
Bitcoin and Crypto Coins Commodities
Will Bitcoin and Crypto Coins be considered as commodities? Federal Judge Rya Zobel decided last week that the US derivatives observer has the power to bring charges against fraud and manipulation in the crypto area. CFTC President Chris Giancarlo confirmed this on Monday. Case, My Big Coin Pay Inc. and a coin known as My Big Coin (MBC).
In the decision document, Zobel referred to the other three crypto-related cases involving the CFTC, in which the crypto was considered commodity and the CFTC was announced on Wednesday.
Or The federal court recognizes that virtual money is a commodity. Rya W. Zobel, a senior judge at the Massachusetts district court, issued an order stating that the Commodity Futures Trading Commission (CFTC) has the authority to sue the fraud against the virtual currency. Massachusetts
CFTC Executive Director James Mcdonald:
”This is an important decision that confirms the CFTC’s authority to investigate and combat fraud in virtual money markets.“
My Big Coin Pay Inc. The defendants claimed that there was no commodity because the MBC did not have futures contracts and other commercial forms related to the MBC. The judge, however, disagreed and ruled that crypto money was a commodity and that the CFTC was authorized to file charges for fraud against the company and its founders who issued shares for crypto money.
CFTC and McDonnell Case
In August, there was another case to recognize the authority of the CFTC on crypto currencies. In the CFTC and McDonnell case, New York East Area Judge Weinstein, Patrick Mcdonnell and his company Cabbage Tech. Corp. dba Coin has been on the observer against Drop.
Zobel is also in June 2016 Bfxna Inc. dba Bitfinex case was also referenced. The CFTC imposed a $ 75,000 fine because it offered retail commodity-financed non-stock commodity transactions and did not register as a futures trading investor.
According to Zobel, the Bitfinex case shows that the crypto currencies are justly defined as commodities.
Another case referred to by Zobel was the first case in which Bitcoin and other crypto coins were accepted as commodities.
This September 2015 case was coinflip Inc. operator Bitcoin option trading platform operator. and its CEO. In its first action against the unregistered Bitcoin option trading platform, the CFTC states that Bitcoin and other virtual currencies are a commodity covered by the Commodity Exchange Act.