The American regulator added several crypto companies to the “red list”

The US Commodity Futures Trading Commission has listed 34 foreign organizations as unregistered. The list includes cryptocurrency companies.

The CFTC has published a notice to add foreign organizations to the so-called “red list”. It includes Bitpay Options, Algobit, Capital Trading Hub. Some of those listed have common domains that redirect users to the same site. Other sites do not work at all, among them are Fx-Cryptex and Direct Cryptos.

The CFTC Red List is designed to provide US clients with information about financial service providers that are not yet registered with the regulator. Now more than 200 organizations are listed in it. Being on the list does not mean that the CFTC considers these firms to be lawbreakers. Rather, it is a warning to users to beware of potential scams.

“A company is added to the red list when, based on investigative leads and public inquiries, the CFTC determines that it is not registered with the department as a company trading in binary or cryptocurrency options, foreign currencies and other financial products. According to the US Commodity Exchange Act, intermediaries working with derivatives are required to register with the CFTC,” the regulator explained the reasons for adding to the list of “suspicions”.

Along with the U.S. Securities and Exchange Commission (SEC), the CFTC has focused on regulating cryptocurrencies due to the recent digital asset market crash and lack of liquidity, resulting in some crypto lenders recently filing for bankruptcy. In particular, we are talking about Celsius and Voyager Digital.

However, Cardano co-founder Charles Hoskinson recently told the US Congress that the cryptocurrency industry can self-regulate, similar to the banking sector, without the intervention of the SEC and CFTC.