Binance May Halt US Operations As Part Of Settlement With CFTC – Bernstein
Following the recent lawsuit against Binance and its CEO, Changpeng Zhao, by the US Commodity Futures Trading Commission (CFTC), world-renowned fund manager Bernstein claimed that Binance might cease its US subsidiary as part of its settlement with the regulator.
The regulator sued the crypto exchange and its founder on March 27, alleging that the firm allowed US citizens to trade crypto derivatives and for non-compliance with the country’s laws.
Out-Of-Court Settlement
According to the Bernstein report, the CFTC charged Binance with unlawful commodity option offers and failure to register as a futures commission merchant. Per the report, Binance.US, as a part of Binance’s overall business, makes up less than 5% of the company’s global operations, as revealed by Bernstein’s report.
With crypto being a global business, the wealth management firm believes that Binance would do all it can to safeguard its interest as the international space is its main cash cow. This means the exchange may pull out its operations from the US to protect its global appeal.
Analysts Gautam Chhugani and Manas Agrawal noted that the exchange is working on getting additional operating licenses in Africa, Europe, and Australia. However, the broker stated that it did not expect the latest action from the CFTC to apply to the broader crypto market.
As a result, it believes the latest development will not trigger any selloff in the wider market as regulatory scrutiny isn’t applicable outside the US. Bernstein hopes the regulatory narrative from Hong Kong and China will spread positive sentiments that will overtake the negative news coming out of the United States.
Changpeng Zhao Counters CFTC Lawsuit
Following the CFTC’s lawsuit against the world’s largest crypto exchange, the Binance boss explained that he disagreed with the sayings of the regulator about the exchange and the issues raised in the lawsuit.
Zhao called the CFTC lawsuit “unexpected and disappointing.” The CFTC filed its lawsuit against Binance at the District Court for the Northern District of Illinois
As part of the lawsuit, CFTC alleged that the Binance CEO had directed employees of the exchange to hide their location via virtual private networks (VPN). Zhao responded that the exchange has a compliance technology in place, including a Know-Your-Customer (KYC) system in adherence to regulatory guidelines.
In the blog post, Zhao noted that the exchange has 750 individuals in its compliance unit, with many having extensive experience in law enforcement and regulations. The CFTC allegations also charge Binance of using its US subsidiary, Binance.US, to hide its footprints and operations.
However, Zhao reiterates in the blog post that Binance employees are not allowed to participate in active trading, so the allegations of market manipulation are not tenable.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at [email protected] if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. CreditInsightHubs is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
