Bitcoin Global News (BGN)
March 18, 2019 -- ADVFN Crypto NewsWire -- Last December was
supposed to herald the launch of Bakkt, which not only plans to
offer a regulated Bitcoin futures exchange, but also a cloud-based
platform to which businesses can connect to accept payments in
crypto.
The reason for all the hype
surrounding Bakkt is simple. The entity behind this platform has a
lot of power, to say the least, since they are the parent company
of the New York Stock Exchange. Furthermore, Bakkt has already
partnered with heavyweights like Microsoft and a Starbucks, which
has already yielded the support of Microsoft’s cloud service as
well as a supposedly planned pilot of Bakkt in Starbucks, during
which customers will be able to pay in Bitcoin.
At this point, the only problem is
that United States regulators seem reluctant to let the platform
launch at all.
In their article today on the
subject, CoinDesk speculated that this could be due to a mixture
involving the significant backlog that offices like the CFTC are
experiencing, as well as the fact that Bakkt’s planned method of
“delivering” their futures contracts.
Essentially, what this seems to be
referencing is that Intercontinental Exchange Inc., which is the
parent company in question, wants to effectively own almost all of
the parts involved in this process, including the futures platform,
and the settlement service through which Bitcoin is delivered to
customers.
In other words, it appears that ICE
may want to control the entire futures process in a confusing
fashion that makes the Bakkt platform difficult to regulate. This
includes keeping the custody service directly in ICE’s office,
while dealing with the contracts with Bakkt as a separate service.
If this sounds confusing, then for now, it should, because no one
seems to be clear on the subject.
For now, think about the difficulty
of regulating a futures platform where a firm attempts to have them
settled physically, as might be done with traditional money or a
hard commodity, except the asset in question is digital. Perhaps,
in the end, ICE will have to change Bakkt settlement method in
order to gain regulatory acceptance.
By: BGN Editorial Staff