The U.S. Commodity Futures Trading Commission (CFTC) will probe the Binance cryptocurrency exchange for insider trading and market manipulation. Bloomberg reports.
According to a source, authorities allege the trading platform conducts its own trades on the basis of client orders before they are filled. No charges have been filed against Binance yet.
The exchange’s spokesperson said insider trading is unacceptable and outlined strict internal rules to prevent potential breaches.
In recent months, financial regulators in several countries, including United Kingdom{{AC CLOSE_1}}, Netherlands{{AC CLOSE_2}}, Italy{{AC CLOSE_3}}, Poland{{AC CLOSE_4}}, Japan{{AC CLOSE_5}}, Thailand{{AC CLOSE_6}}, Hong Kong{{AC CLOSE_7}}, Singapore{{AC CLOSE_8}}, South Africa{{AC CLOSE_9}} and a number of others{{AC CLOSE_10}}, issued warnings to investors about the exchange’s activities.
Against this backdrop, Binance CEO Changpeng Zhao published an open letter, in which he outlined the exchange’s plans to ensure regulatory compliance and customer protection.
In August, Binance introduced mandatory user verification and recruited former U.S. Treasury Department investigator Greg Monahan to a role in anti-money-laundering.
Earlier in September, Zhao said that Binance would abandon its ‘decentralised’ model and transform into a licensed entity with a centralised business.
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.