The Commodity Futures Trading Commission (CFTC) is examining Binance’s operations for potential access by U.S. residents to trading crypto derivatives without the required license. Bloomberg reports, citing informed sources. Bloomberg.
The exchange’s native token slumped almost 10% on the news, according to CoinGecko. The price of Bitcoin fell 2.5% within 30 minutes, testing the $55,000 mark.
“The bull market does not go without FUD. Do not pay attention, stay active in the industry.”, — said Changpeng Zhao, CEO of Binance.
It’s not a bull market without some FUD.
Ignore FUD, keep BUIDLing.
— CZ 🔶 Binance (@cz_binance) March 12, 2021
«We are cooperating with regulators around the world and take regulatory compliance obligations very seriously,”, — said platform representatives to the publication.
The CFTC declined to comment.
The day before, the invitation of Binance to former Senator Max Bokus as an advisor on regulatory matters was reported. He was tasked with maintaining liaison between the company, U.S. regulators, and authorities.
In October 2020, the Forbes article described Binance developing a strategy for deliberately deceiving regulators and extracting hidden profits from U.S. customers.
“The statements and accusations in the article are untrue. Binance has always acted within the law. This is evidenced by numerous regulated exchanges operating in many jurisdictions.”, — wrote Zhao at the time.
In November the company filed a defamation suit against the publication, but in February it was withdrawn.
Also in November, Binance required US customers to leave the platform within 14 days. Previously, for trading on the platform, American clients could indicate at registration that they were not residents of the country.
Earlier, ForkLog reported that Binance-affiliated companies are registered in both the Cayman Islands and the Seychelles.
In October 2020, the CFTC filed a lawsuit against BitMEX and its owners. Additionally, the Department of Justice charged Hayes, Delo, Dwyer, and the platform’s CTO Samuel Reed with violations of the Bank Secrecy Act.
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