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- The US CFTC is investigating trading on Binance exchange
- It seems like the US regulatory enforcement is surrounding the exchange with FUD
- In 2019 CFTC has also probed BitMEX, accusing it of failing to register with the regulators
Binance exchange, one of the world’s biggest cryptocurrency exchanges, is reportedly being investigated by the Commodity Futures Trading Commission (CFTC). According to the report from news-outlet Bloomberg, the CFTC is concerned about whether the exchange allows investors from the United States to trade cryptos. Binance is not registered under the government agency’s oversight and cannot allow such users to trade digital derivatives products on its platform. For this reason only, the US CFTC is investigating the trades on the exchange.
CFTC seems to create FUD over Binance exchange
The news of the investigation is observed soaring in the market, which also affected Binance Coin’s performance (BNB). As the news spread in the market, BNB tokens were observed falling by 6%. Following the current scenario, Changpeng Zhao, the co-founder and chief executive officer of the Binance exchange, tweeted to shrug off the news. According to Zhao, there is no bullish market without some fear, uncertainty, and doubt (FUD). Zhao also mentioned to its users to ignore those FUD and keep building.
Zhao also claimed that this investigation is just an example of scrutiny from US regulators. According to Zhao, the Binance exchange already operates a separate North American entity named Binance.US. Although the entity is limited in the trading products, it is registered with the US Department of the Treasury’s Financial Crimes Enforcement Network.
The investigation news came after Max Baucus tapped
A day before the investigation, news came after the Binance exchange hired Max Baucus. Baucus had previously served decades in the US Senate and later as an ambassador to China. Moreover, he also served Barack Obama, the former president of the US as his ambassador to China. Indeed, now Baucus will be acting as a liaison between Binance exchange and regulators. According to Baucus, the move of CFTC is a business decision, and what’s important is the exchange is confident that it’s already abiding with relevant rules and laws.
CFTC had also probed BitMEX exchange in 2019
In 2019, the US CFTC probed the BitMEX crypto assets exchange, as it allows the investors from the United States to trade crypto derivatives on its platform. The last investigation on BitMEX led to a formal indictment, as the exchange failed to register as a broker. The US CFTC and the US Department of Justice (DOJ) were charged with the accusations. However, this time the regulatory enforcement has targeted the Binance exchange.
