BinancecryptocurrencyCryptocurrency NewsNews

Binance Reportedly Under CFTC Investigation Over U.S. Derivatives Trading Activity, CZ Responds

The U.S. Commodity Futures Trading Commission (CFTC) has reportedly launched an investigation against cryptocurrency exchange Binance, Bloomberg reported today.

The CEO of the exchange, Changpeng Zhao has seemingly issued a response to the reports of a CFTC probe.

CFTC Is Probing Whether Binance Has Permitted U.S. Residents To Trade Unlawfully

According to Bloomberg, the CFTC is investigating whether Binance allowed U.S. residents to trade derivatives on their platforms in contravention of laws. The people familiar with the matter did not give the exact period for the said trading activity.

Binance is not under the purview of the CFTC since it is not based in the United States (although San Francisco-based entity Binance.US serves U.S. customers), but the agency is in charge of overseeing derivatives trading in the U.S. The main concern for CFTC is that Binance possibly allowed U.S. traders to place wagers without reporting to the agency. 

Bloomberg, however, notes that the CFTC inquiry does not include any allegations of misconduct against Binance and might not result in any sort of enforcement action.

The probe comes barely a day after the exchange announced that it had tapped former U.S. senator and ambassador to China, Maxwell Baucus, to provide legal advice to the company and work closely with regulators in the United States. 

CZ Responds

Speaking during a live AMA on Clubhouse, Binance chief Changpeng Zhao did not reveal whether the reports about a CFTC probe are true. However, he maintained that …
Story continues on Zycrypto

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTGrayscaleNewsxbtusd

Grayscale Interested In Applying For A Bitcoin ETF ‘When’ Regulators Give Strong Signal

Approval from the Securities and Exchange Commission in the United States for a Bitcoin Exchange-Traded Fund (ETF) has been sought after high and low for many years. Everyone from the CBOE to Gemini has filed for the ETF but none…
AltcoinsBitcoinBTC Trading ViewEthereumNewsNews 1Trading View

This apparel company is latest to convert $1M of cash reserves to Bitcoin, Ethereum

Over the past few months, Bitcoin has increasingly been positioned as an alternative hedge against fiat devaluation and other negative market events. As a result, many companies are warming up to the The post This apparel company is latest to…
cryptocurrencycryptocurrency tradingIndustry

CryptoLocally And Serum Announce Mutual Listing Of Tokens

After already having collaborated in the past, CryptoLocally, a peer-to-peer (P2P) cryptocurrency trading platform, and Serum, which is an ultra-scalable decentralized exchange (DEX) for cryptocurrencies and derivatives, have now announced the mutual listing of SRM and GIV tokens on CryptoLocally’s…