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US Securities Exchange Clamp down.. Just when you thought last week was crazy with the U.S. Securities and Exchange Commission clamping down on major crypto companies like Coinbase and Tron, you should buckle up for this week’s news.
Binance, the world’s largest crypto exchange by volume, its CEO Changpeng Zhao and Chief Compliance Officer Samuel Lim are being sued by the U.S. Commodity Futures and Trading Commission (CFTC), according to a filing on Monday.
The company, Zhao and Lim are being sued for allegedly breaking trading and derivatives rules.
The CFTC filing alleges the exchange never registered with it in any capacity and has “disregarded federal laws” for U.S. financial markets, including laws that implement controls to prevent and detect money laundering and terrorism financing, among other elements.
After launching in June 2017, the exchange became the largest crypto exchange globally within 180 days and has held that ranking since. Binance has spent $80 million on external partners like KYC vendors, transaction monitoring, market surveillance and investigative tools to support its compliance programs, a spokesperson for the company shared with TechCrunch.
“This filing is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years,” the spokesperson added. “Nevertheless, we intend to continue to collaborate with regulators in the U.S. and around the world. The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime.”
The CFTC probably doesn’t agree with that stance, as its filing stated Zhao and other involved parties in Binance’s senior management have “failed to properly supervise Binance’s activities” and those actions have “actively facilitated violations of U.S. law.”
Binance, the world’s largest crypto exchange by volume, its CEO Changpeng Zhao and Chief Compliance Officer Samuel Lim are being sued by the U.S. Commodity Futures and Trading Commission (CFTC), according to a filing on Monday.
The company, Zhao and Lim are being sued for allegedly breaking trading and derivatives rules.
The CFTC filing alleges the exchange never registered with it in any capacity and has “disregarded federal laws” for U.S. financial markets, including laws that implement controls to prevent and detect money laundering and terrorism financing, among other elements.
After launching in June 2017, the exchange became the largest crypto exchange globally within 180 days and has held that ranking since. Binance has spent $80 million on external partners like KYC vendors, transaction monitoring, market surveillance and investigative tools to support its compliance programs, a spokesperson for the company shared with TechCrunch.
“This filing is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years,” the spokesperson added. “Nevertheless, we intend to continue to collaborate with regulators in the U.S. and around the world. The best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime.”
The CFTC probably doesn’t agree with that stance, as its filing stated Zhao and other involved parties in Binance’s senior management have “failed to properly supervise Binance’s activities” and those actions have “actively facilitated violations of U.S. law.”
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