Offshore Crypto Platforms Can Now Legally Return to the U.S. Market

Quick Highlights ￰0￱ can now trade on foreign crypto platforms ￰1￱ exchanges no longer face dual registration ￰2￱ and others can expand under new FBOT ￰3￱ Clarifies Rules for Foreign Crypto Trading The ￰4￱ Futures Trading Commission (CFTC) has issued guidance regarding foreign boards of trade (FBOTs), clarifying that these platforms may serve ￰5￱ provided they are ￰6￱ update aims to provide long-awaited regulatory clarity for offshore crypto exchanges and ￰7￱ the 1990s, ￰8￱ have been permitted to trade on foreign exchanges under the FBOT registry, which applies to all asset classes, including cryptocurrency. “Today’s FBOT guidance provides the regulatory clarity needed to legalize onshore trading activity that was driven out of the United States by the unprecedented enforcement approach of recent years,” said Acting CFTC Chair Caroline ￰9￱ to the ￰10￱ The previous administration’s regulatory approach forced many ￰11￱ to move operations abroad.

Now, these companies can return by restructuring and registering as ￰12￱ new guidance also opens the ￰13￱ to offshore crypto ￰14￱ example, Binance cannot serve ￰15￱ directly but does so through ￰16￱ the updated rules, more platforms may establish compliant operations in the ￰17￱ Compliance for Exchanges Previously, offshore exchanges faced confusion over whether they had to register not only as FBOTs but also as designated contract markets (DCMs). The CFTC’s latest guidance clarifies that a foreign crypto exchange needs only to register as an FBOT to operate legally in the ￰18￱ 2023, the CFTC charged Binance and its former CEO, Changpeng Zhao, for promoting cryptocurrency derivatives to ￰19￱ without registering as a ￰20￱ clarification now reduces such regulatory uncertainty and encourages responsible market ￰21￱ of a Global Initiative: Crypto Sprint The current guidance is part of the CFTC’s Crypto Sprint, a global initiative to shape the regulatory framework for crypto ￰22￱ providing clear rules, the Commission hopes to encourage offshore platforms to operate safely while giving ￰23￱ access to global crypto ￰24￱ this move, the CFTC is signaling a more balanced approach to regulation, supporting innovation while protecting investors.