What is Binance and CZ accused? A closer look at the CFTC submission

What is Binance and CZ accused? A closer look at the CFTC submission

A US Federal Supervisory Authority has just filed a lawsuit against Binance-the world's largest crypto exchange-because of a far-reaching series of rules of control, which brings Bitcoin back to $ 27,000.

The Commodities and Futures Trading Commission (CFTC) believes that the company and its CEO, Chanpleng Zhao (CZ) have been guilty.

violations of Binance

According to the CFTC Complaint Binance has accepted orders and facilitated the trade in several digital assets for customers in the United States, which the agency regarded as a raw materials.

Some of these raw materials are according to the regulatory authority Bitcoin (BTC), Ether (Eth) and Litecoin (LTC). While there is extensive unity in authorities and in parliament that Bitcoin is a goods, the Securities and Exchange Commission (SEC) has hit numerous Suggestions instead of security.

Although Binance should not operate any customers based in the USA (except for the separate and independent company Binance Us), the CFTC claims that its presence in the country has gradually expanded over time-especially to commercially important institutional "VIP" customers.

Although they knew that this would make regulatory and registration requirements for binance, the stock exchange and CZ ignored these requirements and helped customers to bypass the access controls of the company, according to CFTC.

The disregard of such laws by Binance was quite profitable: In May 2021 alone, income of $ 1.14 billion was achieved from derivative transactions. In the meantime, around 16 % of the accounts on the Binance stock exchange have been identified than in the United States.

The stock exchange is also accused of using and promoting various techniques in order to avoid regulatory requirements. This includes that no fixed headquarters are set up in one place so that Binance is not subject to the laws of this area.

kyc controls

Binance and his employees allegedly encouraged US customers to use virtual private networks (VPNs) to illustrate Kyc controls illegally, and encourage its VIP customers based in the USA to open up accounts to deal with compliance controls.

Finally, the CFTC bony accused the implementation of controls, which would prevent illegal finances:

"Binance has never been registered in any function with the CFTC and has disregarded federal laws that are essential for the integrity and vitality of the US financial markets, including laws that require the implementation of controls to prevent and uncover money laundering and terrorist financing," he wrote them Agency.

As a punishment for the violations of Binance, the CFTC is calling for the CFTC, including commercial and registration ban, degorable and interest before and after the judgment.

According to CNBC, Binance also has helped font-Weight: 400 "> Chinese"> Chinese customer, while he is completely banned, although crypto is completely banned within its borders is.

After CZ was accused, he replied to the lawsuit via Twitter with the number "4"-his unique signal that he avoids "fake news" and "attacks" against bony.

yes 27. March 2023

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