On Monday, the Tera Exchange said it had created a swap based on a bitcoin, reported Reuters. From this action, the payment system could soon find itself under regulatory oversight.
The contract, a bilateral swap, had been constructed for two clients after they had privately negotiated it between one another. Reuters reported that while the parties didn?t act on the trade, they are likely to do so soon.
Tera Exchange reportedly has shown the contract to the CFTC, who is the regulator for swaps and futures. Should a transaction ensue the exchange will need to inform the agency. This follows its previously announced plans to list a bitcoin swap on its Swap Executive Facility (SEF).
Is this the beginning of regulating the product?
Just last week before he ended his time with the CFTC, Bart Chilton said to Reuters that within the last month, companies had been asking about regulations that would oversee exchanges for the trading of bitcoin derivatives.