Bybit Faces CFTC Scrutiny Following The Subpoena Alert From Coinbase

Key Points:

• Coinbase has notified users about a subpoena from the CFTC regarding Bybit.
• Bybit, the third largest offshore crypto exchange, has faced regulatory scrutiny in the UK and Japan.
• Speculation suggests that the CFTC is targeting Coinbase users who interacted with Bybit, potentially leading to legal action against the Dubai-based exchange.

Speculation suggests that Bybit faces CFTC scrutiny as Coinbase notifies users about a subpoena from the CFTC regarding Bybit, the third largest offshore exchange. Coinbase may counter the subpoena. 

According to The Block, Coinbase has notified some users about a subpoena it received from the U.S. Commodity Futures Trading Commission (CFTC) regarding the crypto exchange Bybit. However, the specifics of the subpoena were not disclosed.

Bybit, currently the third largest offshore cryptocurrency exchange after Binance and OKX, has recently faced regulatory scrutiny in the UK and Japan, with warnings and demands for compliance from finance watchdogs.

BybitFaces CFTC Scrutiny For Illegally Offering Trading To US Customers

There is speculation that the CFTC is targeting Coinbase users who have interacted with Bybit, potentially indicating legal action against the Dubai-based exchange. Coinbase mentioned in an email to select users that it may counter the subpoena, which would prevent the handover of user information.

Bybit, founded in 2018 by Chinese entrepreneur Ben Zhou, introduced mandatory know-your-customer (KYC) checks in May of this year after halting US dollar transfers following the collapse of Silvergate Bank.

The news of a CFTC subpoena against select Coinbase users who share transaction history with Bybit suggests that Bybit’s regulatory challenges may continue in the United States. Bybit, headquartered in Dubai, has over 15 million users worldwide and does not serve restricted markets like the UK and the US.

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