The US Commodity Futures Trading Commission (CFTC) is not accusing Binance of any wrongdoing, but is trying to understand the rapidly growing crypto industry. This was stated by Max Baucus, the company’s chief legal adviser, in an interview with Bloomberg.
“Ultimately, the CFTC is simply doing its job conscientiously by studying cryptocurrencies,” said the former U.S. senator.
The regulator’s interest in Binance has become part of its broader push in this direction, Baucus added.
In the notice about an investigation into Binance, the Commission raised questions about whether the exchange permitted US residents to trade crypto derivatives without the appropriate license. The adviser acknowledged that the matter may touch on the platform’s customers’ jurisdiction. The CFTC also noted Binance’s lack of a headquarters.
How the Binance exchange hides its legal structure from regulators and users
Answering questions about his decision to join the company, Baucus said that cryptocurrencies are exciting new technologies and part of the future. He made the decision after a long conversation with Binance founder Changpeng Zhao, who convinced the former senator that the company operates transparently and in accordance with the law.
According to Baucus, his aim is to help the cryptocurrency industry work with regulators and the U.S. Congress.
In November 2020, Binance told American users to leave the platform, offering to register on the company’s U.S. platform. Binance.US has been operating since September 2019.
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