The international crypto exchange giant Binance is being investigated by the US Commodity Trading Futures Commission (CTFC) for allegedly allowing US traders to place wages that go against US regulations. According to the Bloomberg report, people familiar with the matter have reportedly preferred not to be identified. Currently, Binance is not registered with the CTFC, but the CTFC regulates the buying and selling of derivatives in the United States.
Binance has allegedly allowed US traders to buy and sell derivatives.
US CFTC has shown concerns that Binance has allowed this to occur without notifying the CTFC. However, Binance has reportedly not been accused of misconduct, and people close to the matter suggest the probe may not lead to enforcement action. According to the US regulator, cryptocurrencies like Bitcoin are commodities. As a result, the CTFC believes it should have regulatory power over these assets, and so any trading that involves their futures or derivatives would need to be overseen directly by the regulatory agency.
“It’s not a bull market without some FUD.”
In a tweet seemingly directed at the breaking news, Binance CEO Changpeng Zhao responded, saying, “It’s not a bull market without some FUD.” Binance currently blocks US residents from its website and maintains a separate site that is compliant with US regulations, Binance.US, for traders based in the United States. Regulators across countries are currently taking an active interest in the crypto industry. At the time of writing, the SEC is embroiled in a regulatory battle with blockchain firm Ripple, the firm behind XRP cryptocurrency. The US SEC has alleged that Ripple engaged in unregistered security sale with XRP token ICO.