Bitcoin Monday is seeing pressure after the Commodity Futures Trading Commission filed a lawsuit against the world’s largest crypto exchange – Binance.
Why is the CFTC going after Binance?
The CFTC alleges that the platform violated federal laws in order to attract US users – an allegation that could result in a significant blow to its operations.
The said complaint is against not only the exchange but also its CEO (Changpeng Zhao) and CCO (Samuel Lim). According to CFTC Chairman rostin benham,
There is nothing in place that should prevent the CFTC from protecting American investors. I have made clear that the CFTC will continue to use all of its authority to seek and prevent misconduct in the volatile and risky digital asset markets.
In response to the development, CEO Zhao wrote “4” on Twitter, a call for its users to ignore FUD, fake news and attacks.
The CFTC Is Insisting on More Than Just Fines
Binance is not permitted to operate in the United States. Nevertheless, the watchdog alleges that it served US customers and helped them use shell companies to hide their real locations. benham added,
For years, Binance knew they were violating CFTC regulations, actively working to launder money and avoid compliance. This should be a warning to anyone that the CFTC will not tolerate willful avoidance of US law.
In addition to the fine, the Commodity Futures Trading Commission is also pushing for a trading and registration ban on Binance and two of its senior executives.
crypto market news Comes just days after SEC acts coinbase Wells notice for violating US securities laws.