Thursday, June 8, 2023

Binance US law “for years”: CfTc guide

The director of the United States Commodity Futures Trading Commission (CTC), Rostin Behnam, stated that Bitcoin (BTC) and the Binance cryptocurrency exchange have been avoiding US law for “several years” and that the practice of that exchange house is continuing.

This was said on Tuesday, March 28, in an interview with CNBC. According to Behman, Binance “intentionally” evaded the requirements to register with CfTc as a stockbroker, as well as for swaps, futures, and other assets.

“It is an obvious intentional method to evade the law and because of what they offer to their customers, we felt this case was important to send a clear message to other participants in the cryptocurrency ecosystem around the world,” he said. American official.

As CryptoNews reported on Monday, the CfTc formally sued Binance and its CEO, Chanpeng Zhao, for allegedly violating trading and derivatives rules. This caused the price of BTC to drop in the middle of $26,000.

In Behman’s words, it is “pretty good” that Binance wanted to evade the law. Therefore, he saw the need “to act aggressively and as quickly as possible.” It was said that because it was an ongoing fraud, it “returned the information to 2019 and violated the ongoing commodity exchange law.”

“In this particular case, as I said before, there was a clear escape. And when we look at the Binance entities, scattered around the world, with one person in control of the joint ventures, I think that there is clearly a potential liability that can evade the law. It’s a clear and direct way of saying, “Here’s what we have to do to get around the law, so we can get market access.”

Rostin Behnam, head of cfTc.

Behman said that he is “very fair” on this issue against the largest cryptocurrency exchange by trading volume. In turn, he proposed that this situation “demonstrates the need for transparent regulation” in the ecosystem.

“But also from the organizers so that we can avoid situations like this and make sure that we are creating a transparent market so that we are not exposed to manipulation by customers,” he added.

Binance CEO Chanpeng Zhao came forward and denied the CfTc allegations. As CryptoNews reported earlier this Tuesday, a businessman of Chinese-Canadian origin denied that his company handled the trading of cryptocurrencies in the United States.

Biance is from the United States of America

With the CfTct lawsuit, Biance’s presence in the United States would be called into question, and she could disappear. This was suggested by a lawyer specialized in cryptoactives, Cris Carrascosa, about whom this medium reported.

In this lawyer’s opinion, CfTc has raised the case well, and therefore the CEO of the exchange, Chanpeng Zhao, has two things to do in the end.

The first trial must be avoided, including the US binance, and paying a penalty of billions of dollars. The second is to defend yourself and reveal the bowels of the cryptographic company, that is, the movements, the system and other documents.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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