Binance probe sparks wider investigations into non-compliant exchanges.

Ritu77

Binance, the world's largest cryptocurrency exchange, which faced charges including money laundering and violations of banking laws, reached a settlement with the U.S. Department of Justice on the 21st. Binance's founder, Zhao Changpeng, admitted guilt and resigned from his position as CEO. Binance agreed to pay a total fine of $4.3 billion, including a $1.35 billion fine to the U.S. Commodity Futures Trading Commission (CFTC).

In March of this year, the CFTC filed a civil lawsuit against Binance and Zhao Changpeng, accusing the defendants of illegally offering derivative trading and violating regulatory rules. The CFTC sought permanent trading and registration bans on Binance and its related entities, prohibiting activities involving commodity interests and cryptocurrency commodities, control, and more.

It is noteworthy that more cryptocurrency exchanges may become targets of the CFTC. In response to the Binance case, CFTC Commissioner Christy Goldsmith Romero recently stated that there are no "pirate ships" in the U.S. market, and "touching U.S. customers is a privilege, not a right." Romero announced that the CFTC will actively investigate cryptocurrency trading platforms that evade CFTC customer protection mechanisms, and will not tolerate actions such as the use of VPNs or other means to circumvent KYC rules.

At the same time, CFTC Commissioner Caroline D. Pham issued a statement emphasizing that the CFTC's jurisdiction knows no boundaries, and it will hold non-U.S. entities accountable.

CFTC Chairman Rostin Behnam criticized Congress last Wednesday for not implementing any regulatory reforms in the past year to prevent a collapse similar to FTX. He highlighted concerns about the potential use of cryptocurrencies for illegal financing, bringing legislative issues back into focus. Rostin Behnam urged Congress to create a new roadmap, providing the CFTC with appropriate authority to regulate cryptocurrency commodities. He suggested passing the "21st Century Financial Innovation and Technology Act," defining the jurisdiction of the CFTC and the U.S. Securities and Exchange Commission (SEC) over digital assets. Essentially, this would allow us to regulate these transactions through registration and other essential tools.

Samiksha

This is something that will also face fines.

Kamal531

Now it's getting more and more stringent, isn't it?

Niti998

Yes, indeed. The action taken by the United States is just the beginning.

Iravan774

It's the same overseas; there's no escaping.