The US authorities have launched an investigation into the Binance cryptocurrency exchange. This was announced by the Twitter news account DeItaone.
*CFTC EXAMINES WHETHER BINANCE LET AMERICANS BUY DERIVATIVES
— *Walter Bloomberg (@DeItaone) March 12, 2021
“Binance crypto exchange is under investigation in the US for who is trading on its platform. The Commodity Futures Trading Commission (CFTC) is verifying whether Binance allows Americans to buy derivatives, ”the statement said.
“Binance Holdings Ltd., the largest cryptocurrency exchange, is under investigation by the CFTC over concerns that it allowed Americans to place rates that violate rules in the US,” Bloomberg wrote, citing sources familiar with the situation.
As such, the alleged investigation is being conducted against the main platform Binance.com and not Binance.US, which operates under US law and does not allow clients to trade derivatives.
“The CFTC is seeking to establish whether Binance, which is not registered with the agency, allowed US residents to buy and sell derivatives subject to the regulator’s jurisdiction. Binance is not accused of wrongdoing, and an investigation may not lead to enforcement action, ”adds Bloomberg.
Binance said it never comments on its relationship with regulators and strives to operate in accordance with the law. The company noted that it blocks the access of US residents to its website and uses advanced technologies to analyze the input / output of funds for signs of illegal transactions.
“We strive to cooperate with regulators in various parts of the world and take our legal obligations very seriously,” the company added.
“What a bull market without FUD. Ignore the FUD, keep creating, ”Binance CEO Changpeng Zhao tweeted, suggesting that the news might be over-emphasized.
FUD is understood as a tactic of psychological manipulation in the presentation of information aimed at creating fear, uncertainty and doubt in the audience.
Immediately after the appearance of this message, the price of bitcoin dropped from $ 56,400 to $ 55,375. Together with bitcoin, other cryptocurrencies are also declining. As expected, Binance Coin (BNB) is losing more than others, the rate of which has dropped sharply by 9% from $ 275 to $ 250.
In July 2019, the US authorities launched an investigation on the same grounds against BitMEX and subsequently charged it on several counts, including illegal sale of derivatives to American investors and violation of bank secrecy laws.
Just yesterday, Binance announced that it had recruited former U.S. Senator Max Bockus as its Regulatory Advisor.
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