CFTC Commissioner Christy Goldsmith Romero stressed that the agency will take a tough approach to cryptocurrency platforms if they violate trading rules. The financial regulator will not tolerate the use of VPN services, asking users to confirm that they are not located in the US, or any other actions that can be used to circumvent Know Your Customer (KYC) procedures.
“There are no pirate ships in US markets. Access to US clients is a privilege, not a right. We will aggressively pursue crypto platforms operating in the US market if they seek to circumvent the CFTC’s customer protection regime,” Romero said.
Another CFTC commissioner, Caroline Pham, confirmed that the agency will use its international authority to prosecute cryptocurrency companies for violations, even if they are not American.
The regulator’s warning was made against the backdrop of a scandal with the largest cryptocurrency exchange Binance. Its founder Changpeng Zhao stepped down as CEO and Richard Teng now holds the position. Zhao was released on $175 million bail and a hearing is scheduled for February 2024.
A year ago, charges of money laundering and fraud were brought against the founder of the bankrupt crypto exchange FTX, Sam Bankman-Fried. He is now in custody and faces 110 years in prison.
Source: Bits
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