• The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao for violating the Commodity Exchange Act and other regulations.
• CFTC heads are seeking financial penalties and a permanent ban in the United States against Binance.
• After CFTC announcement, Bitcoin price descended from its nine-month high of around $28K to the high $26K range.
CFTC Sues Binance
The U.S. Commodity Futures Trading Commission (CFTC) is suing Binance and its founder Changpeng Zhao after the crypto exchange allegedly violated the Commodity Exchange Act and other regulations. CFTC chair Rostin Behnam stated that “For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance” while Gretchen Lowe – principal deputy director and chief counsel to the CFTC’s enforcement division – added that ”Binance deliberately chose – over and over – to place profits over following the law“.
Binance’s Popularity
Binance is world’s largest digital currency trading platform with daily trading volume of roughly $9 billion USD and 90 million users in multiple countries which has made it a target for various agencies. This has been enabled by various corporate entities rather than a single governing body helping it evade regulation and committee oversights.
Price Decline After Announcement
The lawsuit against Binance sent ripples throughout crypto space with bitcoin descending from its nine-month high of around $28K to the high $26K range after the CFTC made their announcement about financial violations by Binance according to Ed Moya – an analyst at Oanda – who commented that „Many knew Binance had a bullseye on its back, but this is still unnerving some crypto traders.“
Financial Penalties Desired by CFTC
The agency seeks financial penalties as well as a permanent ban in US for Biance due to violation of current financial laws for several years without any regard for them which shows how serious CFTC takes these violations as Rostin Behnam stated: „This should be a warning to anyone in digital asset world that CFTC will not tolerate willful avoidance of US law.“
Conclusion
It remains unclear what future holds for one of world’s largest cryptocurrency exchanges as many depend on it for growth but what’s sure is that agencies like CFCT won’t let such violations slide away easily so violators have no choice but face consequences if caught violating laws or regulations regarding cryptocurrencies or any other assets or services related to them