Binance Says US Law ''Does Not Control The World'' In Renewed Bid To Dismiss CFTC Lawsuit

Binance Says US Law ”Does Not Control The World” In Renewed Bid To Dismiss CFTC Lawsuit

Updated: 24 October 2023

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Binance filed a new motion to dismiss charges brought against it by the Commodity Futures Trading Commission (CFTC) and lashed out at the regulator for trying to “control the world.”

The world’s largest crypto exchange said in a court filing that the CFTC is attempting to regulate foreign individuals and corporations operating outside the US, disregarding the limitations set by the Commodity Exchange Act (CEA).

“The CFTC relies on new and broad arguments that would allow it to regulate any activity in cryptocurrency (or other assets) related to a derivatives product anywhere on the globe,” Binance said. “US law governs domestically but does not control the world. Congress did not make the CFTC the world’s derivatives police.”

The US commodities watchdog maintains that foreign businesses must follow its “Know-Your-Customer” requirements, despite the agency not having jurisdiction over these companies, Binance said.

Its complaint against Binance includes accusations of sidestepping regulatory compliance to provide services to U.S. citizens, not implementing proper customer verification procedures, providing guidance to VIP members on ways to avoid regulations, and intentionally failing to adhere to Commodity Exchange Act (CEA) requirements.

Binance Says CFTC Used ‘Incendiary Language’

Binance also raised concerns about the CFTC’s use of “incendiary language.” It says that instead of providing a convincing case, it resorted to incendiary language about the exchange’s foreign business entities and the ”supposed conduct” of founder Changpeng Zhao.

“But despite the CFTC’s apparent dislike of these non-U.S. Defendants, this is not a case about any harm to users
of Binance.com, and the agency has not alleged any such harm,” it said. “This is a case about (deficient)
allegations of failure to comply with registration requirements and certain compliance rules.”

Binance first sought the dismissal of the CFTC’s lawsuit in a motion filed on July 27.

#Binance and its CEO, Changpeng “CZ” Zhao, have officially requested the dismissal of a lawsuit brought by the United States #CFTC. The motion, submitted on July 27, accuses the CFTC of overstepping its regulatory boundaries and engaging in regulatory overreach.

— Crypto Winner (@_CryptoWinner) July 28, 2023