A September 2014 site snapshot on Internet Archive advertised Derivabit services as “Financial derivatives to manage exposure to Bitcoin volatility – Buy & sell option contracts to control your Bitcoin risk” and listed ongoing trades.

So says the Commodity Futures Trading Commission (CFTC), which on Thursday announced it had filed and settled charges against a Bitcoin exchange for facilitating the trading of option contracts on its platform.

In deeming bitcoin a commodity, the regulator asserted that derivatives based, it falls under its oversight.

The website derivabit.com hasn’t been active since mid-2014.

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In a press release, the CFTC explained it had “issued an Order filing and simultaneously settling charges …”

From the observation it looks the two parties reached to an amiable settlement as even Francisco Riordan, who represented himself in the case, said he felt the settlement with the CFTC was fair.

Bloomberg spoke to the leading members of the bitcoin community for their views on the matter.

Does the ruling change the fundamental nature of what Bitcoin is, and how its advocates will use and develop it? None of them has a lot work to do as a result of there’s not an entire lot of monetary innovation occurring within the States. “So when they find a small one-man startup they can’t resist giving themselves work to do – so they go in and whack it, especially in California”, Mike Hearn, a software developer specializing in Bitcoin said.

Heard added that he is not terribly surprised and not terribly anxious . “The ruling will be challenged and judges will apply common sense and decide it to be a currency” as happened in the Silk Road case.

Client accounts that hold actual Bitcoins or other virtual currency units (as distinguished from Bitcoin or other virtual currency derivatives) are not directly affected by this matter’s resolution; this decision does not directly impose CFTC reporting or similar obligations for direct holdings of virtual currency units.

The sanctions in this matter were non-monetary[7] and included a cease and desist order and an undertaking to cooperate with the CFTC and any other governmental agency in future investigations or litigation related to the facts of this action. If youre in England, everything happens in one city regulators can easily visit the Chancellor, Bank of England and the companies.

“Having said that I’d rather Bitcoin were regulated as a commodity because commodity regulations are the lightest”. To stock regulators, it’s a stock.