NFA Applies Antifraud Compliance Requirements to Transactions Involving Digital Assets

NFA issued NFA Compliance Rule 2-51 ("Requirements for Members and Associates Engaged in Activities Involving Digital Asset Commodities") that applies antifraud requirements to activities by member firms in Bitcoin and Ether.

The Rule prohibits any member firm that engages in digital asset commodities from (i) fraudulent activities or communications, (ii) making false reports, (iii) engaging in manipulative acts or (iv) embezzling and stealing in connection with a transaction involving a digital asset commodity. The Rule uses the term "digital asset commodities" that limits the scope to transactions in Bitcoin and Ether.