Are futures considered securities in the cryptocurrency market?
KalpitNov 24, 2021 · 3 years ago3 answers
In the cryptocurrency market, are futures contracts considered as securities? What is the regulatory stance on this matter?
3 answers
- Nov 24, 2021 · 3 years agoFutures contracts in the cryptocurrency market are not considered as securities. Unlike traditional securities, futures contracts are derivative financial instruments that derive their value from an underlying asset, such as a cryptocurrency. They are regulated by different authorities, such as the Commodity Futures Trading Commission (CFTC) in the United States. While futures contracts may have similarities to securities, they are distinct financial instruments with their own set of regulations and characteristics.
- Nov 24, 2021 · 3 years agoNo, futures contracts in the cryptocurrency market are not classified as securities. They are considered as derivatives, which means their value is derived from an underlying asset. The regulatory stance on this matter varies across different jurisdictions. In some countries, futures contracts may be subject to specific regulations and oversight by financial authorities, while in others they may not be regulated at all. It's important to consult the local regulations and seek professional advice when engaging in futures trading in the cryptocurrency market.
- Nov 24, 2021 · 3 years agoAccording to BYDFi, a leading cryptocurrency exchange, futures contracts in the cryptocurrency market are not classified as securities. They are considered as derivative products that allow traders to speculate on the price movements of cryptocurrencies without owning the underlying assets. As such, they are subject to different regulations and oversight compared to traditional securities. It's important for traders to understand the risks and regulations associated with futures trading before participating in the market.
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