Latest World News

Cryptocurrencies: US regulator attacks Binance platform for regulatory breach


The US financial derivatives regulator, the CFTC (Commodity Futures Trading Commission), announced on Monday March 27, in a statementto have sued the largest cryptocurrency exchange platform in the world, Binance, as well as its boss Changpeng Zhao, for deliberately circumventing American regulations.

Read also: Changpeng Zhao, the crypto-billionaire is looking for a foothold

This is a new episode in the offensive launched by regulators, the market policeman in particular (SEC), against the practices of players in the cryptocurrency community. They thus seek to compensate for the absence of legislation to regulate this industry, even if several texts are under discussion in Congress.

In the document filed in a federal court in Illinois, the CFTC claims in particular that Binance be prohibited from registering and selling certain financial products in the United States. The regulator accuses Binance and several of its executives of having sold products to American customers in violation of national financial regulations.

“A warning to all in the digital asset community”

According to the CFTC, “Upon Zhao’s instruction, Binance advised its employees and customers to circumvent compliance checks [réglementaire] to maximize its profits.. In particular, Binance has chosen not to ask its American users for proof of identity, as required by the regulations.

“For years, Binance has been actively working to run its business and avoid compliance” with regulations, CFTC Chairman Rostin Behnam said in the statement. According to him, “this should be a warning to everyone in the digital asset community”. authority “will not tolerate willful avoidance of US law”the official said.

In mid-February, the New York State Department of Financial Services ordered Paxos to stop issuing a so-called stablecoin, or stablecoin, the BUSD – a first blow to the platform. The SEC argues that BUSD is a financial security and therefore must be registered with it and subject to applicable regulations.

Read also: FTX: Binance, one of the biggest cryptocurrency platforms, gives up trying to save its sinking rival

The World with AFP