Paul Chou
Paul Chou

Access and regulation

New York-based LedgerX is currently awaiting regulatory approval from the U.S. Commodity Futures Trading Commission (CFTC) to operate the first US-regulated exchange and clearing house for trading bitcoin options. Paul Chou, CEO, LedgerX, spoke to William Essex about the company’s plans.

William Essex: In a few words to get us started, what’s the vision? PC: Our vision is to be a US-based, US-regulated platform for options on Bitcoin. The instruments that we’re going to focus on first are physically settled options. This is going to be one of the first ways, in the United States in particular, where the end-user who exercises a call option can get access to the underlying Bitcoin. WE: You’re based in New York, home of the proposed BitLicense, and yet you’re talking to the CFTC. Why? PC: In early December, the chairman of the CFTC noted that, depending on the specific activity, the agency does have jurisdiction over digitial currency futures and swaps, as they would any commodity.  Since we are offering bitcoin options, our application falls to the CFTC for approval.   However, bitcoin spot exchanges do not have such a clear path in the U.S.   New York state has proposed the BitLicense, and there have been other regulatory frameworks proposed by the...continued

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