US regulator sues Binance for US law wilful evasion

JM — Wed, 14 Jun 2023 05:30:16 +0000

US regulator sues Binance over wilful evasion of US law

The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Binance, one of the world’s largest cryptocurrency exchanges, and its CEO accused of wilful evasion of US law. The complaint also charges Binance’s former chief compliance officer with helping the firm commit the violations. Gretchen Lowe, the CFTC’s chief counsel, critised Binance for putting profits ahead of complying with the law, alleging that the platform has violated the US Commodity Exchange Act and CFTC regulations since 2019. One of the accusations included the offer and carrying out of derivatives transactions to US customers despite declaring its intent to block US clients from accessing its platform. Binance denies the allegations.

US regulators taking concerted action against cryptocurrencies

The CFTC’s legal action against Binance shows US regulators are taking concerted actions against cryptocurrencies. Recently, the US financial watchdog, the Securities and Exchange Commission (SEC), hinted at considering potential enforcement action against Coinbase. Binance has put profits ahead of the law, culminating in the violation of federal laws and regulations. The CTFT claims that Binance did not require client identification before trading, failed to implement basic procedures to prevent terrorist financing and money laundering, and asked employees to communicate with US customers about evading controls through a messaging app that automatically deletes messages. Binance is a well-established cryptocurrency exchange founded by Changpeng Zhao in 2017. The company spokesperson commented that the legal case was unexpected and disappointing while saying, “The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime.”

Unknown impact of legal action

It is unknown how this legal action will affect the UK market, or if other cryptocurrency exchanges could face similar legal issues. Overall, this case highlights the significance of the difference in cryptocurrency regulations across different countries. As the popularity of cryptocurrencies grows, it is essential to have clear and consistent regulations across jurisdictions.

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US regulator accuses Binance exchange of illegally serving US clients

JM — Mon, 27 Mar 2023 17:52:34 +0000

Allegations of illegal activity by Binance exchange

The cryptocurrency exchange Binance has been hit by accusations from the US Commodity Futures Trading Commission (CFTC) that it illegally served US customers.

Growing scrutiny of cryptocurrency activities by regulators

Binance is one of the world’s largest digital currency exchanges and the allegations come amid increasing scrutiny of cryptocurrency activities by regulators around the world.

CFTC orders Binance to pay $370 million in charges

The CFTC has ordered Binance to pay $370 million to address the charges, which include offering futures contracts to US traders without being registered with the regulator. Binance has rejected the allegations and said it would vigorously defend itself.

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