Home / Bitcoin / Why is the most awaited project, Bakkt, not getting a green signal?

Why is the most awaited project, Bakkt, not getting a green signal?

In the mid-2018, the whole crypto market witnessed a project announcement that grabbed enormous attention all over the world. The project, namely Bakkt, has actually been one of the most highly-awaited projects since then.

The reason for such enormous attention was the fact that this was supposed to become one of the largest Bitcoin Future trading platforms. Not just this but the majority of the population in the crypto market actually saw it as an opportunity for the arrival of the institutional investors.

However, the worst part about this project is the fact that though it was to be launched in late 2018, it has not made it to the market yet. While there was still a hope that Bakkt might get a green signal in February 2019 but the US government didn’t let it happen as well.

The Only Imperative Question: WHY?

The most obvious question now is why would a project that has assured various better services take so long to come into the market? Well keeping all the facts and figures in mind, we might explore the clear reasons behind this.

Since its quite clearly known that the Bakkt’s prime objective included offering Bitcoin futures contracts, most of which were basically investment contracts. According to which the investors are obliged to purchase as well as sell any particular asset at a particular time. However truth be told, there are enormous crypto exchanges that already deal with Bitcoin futures even though these contracts are settled with cash.

Now as far as Bakkt’s plan is concerned, it decided to include paying them out with Bitcoin. It is quite obvious that in order to do so, Bakkt needs its hold BTC itself. This ultimately makes it a custody service. But the worst part is its Custody Service doesn’t meet some imperative regulations.

To be specific, According to the CTFC, there is a strong need for the clearinghouses to deposit the customer assets at trust companies or banks. And this is the criteria that Bakkt doesn’t fulfill. This is why its launch gets delayed.

About Zaryab Afser

A stock market trader, a blogger , a cryptocurrency enthusiast ... Awareness of proper trend and Action at the correct time are the 2 most imperative tools to succeed in the crypto world. He will undoubtedly provide you with the first tool. Moreover he ensures that his readers never miss any data or news of the crypto world that might end up shifting your trade to the zenith of its glory. Cheers.

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