The National Futures Association will begin requiring brokers and other financial professionals to provide customers with enhanced disclosures and warnings about the risks associated with virtual currency products and trading.
The substance of these disclosures will include risks about volatility and price discovery, pseudonymity, the potential for market manipulation, and the lack of regulatory oversight of real-time virtual currency trading. It is expected that different disclosure requirements will be placed on commodity pool operators and commodity trading advisers in one group, and introducing brokers and futures commission merchants in another.
For more information, see here.
This article was written with contributions from Nabeela Latif.
