For the past few days, the rag has been burning between the Binance crypto platform and the CFTC. The latter has also initiated legal proceedings, raising a notch the pressures that the exchange is already under.
Binance Fraud Regarding Commodity Exchange Act (CEA) Rules
Presumably, the Commodity Futures Trading Commission (CFTC) is not done charging Binance and its boss Changpeng Zhao. Friday April 14, Rostin Behnam, the president of the CFTC expressed himself on the lawsuits launched against the exchange.
According to his explanations, the decision to take Binance to court would result from the fraudulent choices that the firm would have made. He accuses the exchange of deliberately evading the laws on the exchange of commodities and futures contracts.
Behman’s position is the same as that recently posted by Gretchen Lowe, the CFTC’s deputy director. Together, they accuse the Binance group of having carried out, in the most complete illegality, several crypto transactions.
This, by authorizing many Americans to carry out operations via virtual private networks (VPN), in defiance of the law. Binance would thus have violated the Commodity Exchange Act (CEA) and its related regulations.
“These are not uninformed individuals. They build big companies and offer futures and derivatives to US clients. If you offer futures contracts in the United States, clearly you must be registered with the CFTC and comply with the law,” Behnam said at a conference at Princeton University.
Binance denies the facts en bloc. The company maintains, in particular, that it has regularly and in good faith multiplied measures to bring its practices into compliance. For its part, the CFTC seems to have the evidence contrary to the arguments of the exchange, which will certainly be presented in the context of a trial.
In the meantime, the crypto business is the big loser in history. Recently, reports of it losing market dominance have leaked out. In the process, Changpeng Zhao denounced an unsuitable regulatory policy.
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A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of the blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand the blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of the news, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal challenges of this revolution in progress.
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