Bakkt hits delays as CFTC raises concerns over Bitcoin custody

23 Mar, 2019
by Richard Allen
News
Bakkt hits delays as CFTC raises concerns over Bitcoin custody

The much-anticipated launch of institutional crypto platform Bakkt may be delayed yet again following concerns raised by the US Commodity Futures Trading Commission (CFTC) over how the platform plans to store customers’ Bitcoin, the Wall Street Journal reports.

Bakkt’s parent company, Intercontinental Exchange (ICE) originally planned for a November 2018 launch for Bitcoin futures. Bakkt also stated that it planned to store Bitcoin on behalf of its clients in its “physical warehousing.”

The CFTC told Bakkt in February that compliance would require additional steps if the platform was planning on taking custody over clients’ cryptocurrency. Specifically, the CTFC stated it would “require disclosures of the venture’s  business plan and a public comment period, which would have further delayed approval.”

The CTFC has suggested that Bakkt register as a trust company to circumvent these issues, but this is a time-consuming process and the platform is anxious to minimize any further delays.

A spokesperson for ICE told the Wall Street Journal: “We are working through the regulatory review process and are looking forward to updating the market soon.”

As Chepicap recently reported, Bakkt received a $740 million valuation after it raised over $180 million in funding.

Read more: 5 ways Fidelity and Bakkt could change cryptocurrency in 2019

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Read more about: Bakkt Bitcoin (BTC)

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