Binance, the world’s largest centralized digital asset exchange, is accused of violating U.S. laws by soliciting and accepting orders for futures, options, swaps, and leveraged retail commodity transactions involving digital assets from U.S. customers without proper registration. The exchange, its CEO Zhao, and former Chief Compliance Officer Lim are alleged to have intentionally obscured the location of its executive offices and the identities of the entities operating the platform to avoid regulation.
The company has reportedly earned significant revenue from U.S. customers while disregarding federal laws, including anti-money laundering and counter-terrorism financing requirements. The CFTC seeks an injunction, civil monetary penalties, and other relief to compel compliance with the Commodity Exchange Act.
But I think long term it’ll be bullish because both SEC and CFTC are looking for ways to regulate cryptocurrencies be it as securities or commodities. Eventually, that might lead to more adaptation (if it actually gets regulated). But we might be in for an even rougher ride in the meantime
I’m not overly concerned about this. It’s not bad for CEXs to be held accountable for shadiness, and while not the best look short term, it’s a net positive long term
and how do you think binance is able to stay afloat after all these years while offering APR’s on stablecoins above 10%? especially during the bear market?
