The New York State Department of Financial Services and the CFTC have released a series of papers on Occ Crypto Regulations. This regulatory framework is meant to facilitate digital asset exchange in the financial world, but the CFTC itself is meant to give the banks an extra level of protection from their customers. The Department of Justice is also involved in the process and has been collecting information about banks using occ Crypto Currency as part of their investigation into potential market manipulation. The regulators have found out that banks cannot freely use occ as part of their trading platform because of concerns that some customers might be able to manipulate the value of certain currencies through their control of the processing network.
There are several ways how one can be used within the financial institutions themselves, and they can be traded through the interbank market or through the Global Market. Currently however, most US banks use the interbank market. This market is created by clearinghouses and brokers, where foreign currency trades are finalized in real time. Foreign exchange Traders then transfer their requests to the clearinghouse that then sends the trade request to all of the major banks. This is a fair and regulated method, which allows all parties to participate fairly, without fear of partial interference.
But the New York State Department of Financial Services and the CFTC believe that this system does not sufficiently protect US citizens. The Federal Trade Commission is currently considering new regulations for digital asset exchanges. In their current form, these orders require banks to provide transparent plans for their handling of interbank and commercial transactions. In addition to regulating the amount of fees that banks charge for trades made by customers, they are also meant to regulate the manner in which these institutions interact with one another.
Financial institutions have proposed several ways to integrate one into their existing systems. They have proposed to create a “virtual platform” for traders to execute their trades across the various banks. They have also sought out methods of implementing occ into the pricing of gold and silver. Both of these methods would dramatically alter the costs and profit structures of many of today’s largest banks. A recent article in the New York Times highlights several arguments against regulating cryptosporters, with the CFTC being the chief target.
Cryptocurrency traders may use or to facilitate “spoofing”. This is the practice of investors manipulating the price of an underlying instrument to achieve a loss before it occurs. The CFTC has deemed that some forms of occ are conducted “illegally” and therefore should be illegal. However, the Financial Commission seems to have little power when it comes to actual enforcement. The proposal to implement custody services is not intended to prevent traders from executing their trades; rather it is to make the process more transparent and streamlined for all participants. This will likely result in higher fees for these financial institutions, but ultimately the end goal is to prevent wrongful trading activity.
US banks have sought out one provider assistance in order to obtain the tools they need to monitor and record their customers’ activities. Many US banks have already begun to incorporate one into their trading platforms, however this functionality will likely only be offered to those with the most sophisticated trading platforms. The goal of cryptosporters will always be to facilitate trade which will ultimately increase liquidity, and increase profits. Providing assistance to US banks in this way will ultimately increase efficiency and decrease cost to the general public.
The CFTC has been attempting to introduce legislation that will regulate the US banks themselves. However, this legislation is being viewed as untested and uncertain, and few US representatives want to take a strong stand against major financial institutions. Even if the CFTC manages to pass this legislation, the impact will be minimal as most US residents will not be able to partake in the new regulated markets. Those who profit from the sale of these coins will instead transfer them to US based custody providers.
The inability of US citizens to participate in the global marketplace due to lack of available funding has been one of occ’s greatest obstacles. With the advent of occ-based custody services, all US citizens will be able to utilize the wide range of functions available with cryptosporters such as market observation and reporting, risk management and other operational functions. Through the implementation of our software and the introduction of our certification, US banks will once again be at the forefront of international trade. In the end, the adoption of our software will benefit the entire industry by ensuring open communication channels and allowing US companies the same access to liquidity and other benefits afforded to the rest of the world.