Market News- The head of the CFTC has accused Binance of breaking international rules.
- The CFTC has filed a lawsuit against Binance and its CEO for several violations.
- Binance’s operations in the U.S. are under scrutiny from other regulatory bodies.
U.S. regulators continue their crackdown on the cryptocurrency industry, with the head of the Commodity Futures Trading Commission (CFTC) admonishing Binance Holdings Ltd over its compliance with U.S. rules.
In a lawsuit against Binance and its CEO, Changpeng Zhao (C.Z.), CFTC alleged that the company and its top executive had broken several rules, including failing to prevent U.S. citizens from trading on the platform and failing to register with the regulator.
During a recent interview at Princeton University, CFTC Chairman Rostin Behnam accused Binance of breaking international rules. He further stated that if the world’s largest cryptocurrency exchange wants to continue its operations in the United States. The major crypto exchange must be prepared and willing to comply with the regulations laid out by the U.S. regulatory bodies.
IRS and Prosecutors Investigate Binance’s Compliance
In addition to the ongoing investigation by the CFTC, Binance’s operations within the United States are also under scrutiny from other regulatory bodies. The Internal Revenue Service (IRS) and federal prosecutors are examining whether the exchange has complied with anti-money laundering obligations. However, the Securities and Exchange Commission is investigating whether Binance facilitated the trading of unregistered securities.
Furthermore, SEC Chair Gary Gensler has taken swift action against major crypto firms, such as the $30 million settlement reached with Kraken over its staking program. Gensler has explicitly stated that several digital assets bear a resemblance to unregistered securities, and has issued a warning to the industry. The industry must remain aware of these concerns and take necessary measures to address them.
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Source: https://thenewscrypto.com/cftc-cracks-down-on-binance-over-compliance-issues/