Bakkt Delayed Over Bitcoin Custody Concerns

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Bakkt Delayed Over Bitcoin Custody Concerns

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Highly-anticipated cryptocurrency platform Bakkt has run into trouble with the US Commodity Futures Trading Commission (CFTC) over its custody plans for clients’ Bitcoin.

Bakkt promised prospective clients it would request from the CFTC permission to provide the first Bitcoin futures that would be physically deliverable daily, as well as storing clients Bitcoin in a physical warehouse on their behalf.

However, according to sources familiar with the matter, the CFTC has said that Baakt’s custody protocol would need to take further steps in protecting the cryptocurrency in order to be compliant the commission’s rules. It said they would ”require disclosures of the venture’s business plan and a public comment period, which would have further delayed approval.”

The CFTC has suggested Bakkt register as a trust company to circumnavigate these issues, although it was claimed this could be a time-consuming process and the firm wishes to minimize any further delays. Initially scheduled for a November 2019 launch, several issues with the CFTF have pushed the debut back.

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

 

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