US SEC keeps tabs on crypto exchanges
The crypto exchange has been put on notice by the US SEC for allegedly breaking securities laws; US CFTC sues crypto exchange Binance over trading, derivative violations
image for illustrative purpose
San Francisco: The US Commodity Futures and Trading Commission (CFTC) has sued leading blockchain and cryptocurrency platform Binance for allegedly breaking trading and derivatives rules, media reports said.
Along with Binance, the CFTC sued the company's CEO Changpeng Zhao, and Chief Compliance Officer Samuel Lim, reports TechCrunch.
According to the filing, the exchange has never registered with the CFTC and has "disregarded federal laws" that govern US financial markets, including laws designed to prevent and detect money laundering and terrorism financing.
Moreover, the CFTC noted that the company's monthly revenue earned $1.14 billion from derivatives transactions in May 2021, up from $63 million in August 2020, and of that amount, around 16 per cent of Binance's accounts were held by US customers, according to the report.
The filing also stated that Zhao and other involved parties in Binance's senior management have "failed to properly supervise Binance's activities and activities and, indeed, have actively facilitated violations of US law, including by assisting and instructing customers located in the US to evade the compliance controls Binance purported to implement to prevent and detect violations of US law".
