Photo: Coinspeaker
The launch of ICE’s platform is facing several roadblocks despite the company initiating several measures. The Bakkt in August 2018 created huge euphoria in the crypto community. However, regulatory hurdles have caused the crypto exchange to delay its plans several times.
According to a Bloomberg on Thursday, April 18, Bakkt is now seeking to get a license for the custody of from the New York Department of Financial Services (NYDFS). Note that with the Bakkt platform, it also plans to launch the Futures contracts.
Furthermore, Bakkt’s futures would be physically settled contracts. Meaning, upon expiry of the contract, will get physical delivered to their wallets. Hence if it has to custody for its , Bakkt needs an official license for the same.
Bakkt’s Regulatory Roadblock
Over the last five months, Bakkt has been trying to persuade the Commodities and Futures Commission (CFTC) to get a license for futures. However, it has been having a hard time convincing the regulator. So what’s holding CFTC from approving a license to Bakkt.
According to CFTC’s regulatory rules, clearinghouses should deposit their funds at a trust company or a bank. But currently, Bakkt is neither of the two. Also, Bakkt’s idea of using for retail transactions might not go well with the CFTC considering high volatility of the crypto . Bakkt’s recent application with the NYDFS could create a gateway for the exchange to get a CFTC approval.
Despite these regulatory hurdles, Bakkt CEO Kelly Loeffler assures that they are working on further developments for the platform. In a March 29 post on , Loeffler said:
“While we’re not yet able to provide a launch date, we’re making solid progress in bringing the first physical delivery price discovery contracts for to the U.S., where price formation will occur in federally regulated, transparent markets.”
Recently, Bakkt that it plans to acquire some of the assets belonging to Rosenthal Collins Group (RCG). Earlier this year, Bakkt raised $182 million from 12 high-profile investors to continue further with its expansion plans. In January 2019, Bakkt also started more people in anticipation of the launch of its platform.
Published at Fri, 19 Apr 2019 12:36:02 +0000
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