- The Commodity Futures Trading Commission (CFTC) is reportedly investigating whether Binance allows Amletscans to buy derivatives.
- The cryptocurrency market experienced an instant crash after the announcement, with BNB taking the biggest hit, dropping 10%.
- The CFTC is also investigating the exchange on KYC regulations and more.
The CFTC is investigating Binance on whether the crypto exchanger allowed US residents to buy or sell derivatives, as Binance is not registered with the agency. However, it is important to note that the exchanger has not yet been charged with anything.
Furthermore, Binance has always stated that it will not comment on communications with regulators. The crypto exchanger blocks US residents from the website and has created a specific exchange called Binance US for them.
In recent months, the CFTC has been busy with cryptocurrency exchanges, most notably suing BitMEX for failing to register as a broker. Coinbase also stated that it is working to respond to an extensive investigation from the CFTC.
Cryptocurrency Market Instantly Crashes After Announcement
Just before the announcement, the total market capitalization of all cryptocurrencies was roughly $ 1.73 trillion, which quickly fell to $ 1.68 trillion in just one hour. Bitcoin lost around 2% of its value, but the most affected digital asset was BNB by far, which fell more than 10% instantly.
Total market capitalization
Similarly, other BSC-related projects such as PancakeSwap also faced significant selling pressure. Surprisingly, Ethereum has also dropped about 3% in the last hour.
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