{"id":381927,"date":"2023-03-28T10:52:40","date_gmt":"2023-03-28T10:52:40","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=381927"},"modified":"2023-03-28T10:52:40","modified_gmt":"2023-03-28T10:52:40","slug":"binance-ceo-addresses-four-key-issues-in-his-response-to-cftcs-disappointing-complaint","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/binance-ceo-addresses-four-key-issues-in-his-response-to-cftcs-disappointing-complaint","title":{"rendered":"Binance CEO Addresses Four Key Issues In His Response To CFTC’s \u201cDisappointing\u201d Complaint"},"content":{"rendered":"
Binance, the largest cryptocurrency exchange by trading volume, is in trouble. The US Commodity Futures Trading Commission (CFTC) just slammed it with a “<\/span>civil enforcement action.<\/span><\/a>”<\/span><\/p>\n This cannot be good news for the Changpeng Zhao-led company as the CFTC alleges that Binance and its Chief Executive Officer (CEO), violated federal laws. The charges were placed on three persons, Binance (Binance Holdings Limited, Binance Holdings (IE) Limited, and Binance (Services) Holdings Limited<\/strong><\/em>), Changpeng Zhao a.k.a CZ, the CEO of Binance, and Samuel Lim, the former Chief Compliance Officer (CCO) of Binance between 2019-2022. <\/span><\/p>\n This is not a mild charge by the CFTC as the over 1000-word civil enforcement action complaint against the exchange stated “For years Binance knew they were violating CFTC rules.” and its efforts to comply with futures and derivatives trading laws “have been a sham.” The regulator also accused Zhao of his “long-running failure to act in good faith” while at the helm of the company. <\/span><\/p>\n The filing revealed that CFTC was not after Binance’s spot trading services. It was after its cryptocurrency derivatives business. <\/span><\/p>\n Note that <\/span>crypto derivatives, in the US, are <\/span>treated<\/span><\/a> as commodities and hence are under the CFTC’s jurisdiction, while spot cryptos are treated as securities when sol<\/span>d. <\/span><\/p>\n Therefore, th<\/span>e regulator is going after Binance for five main reasons: <\/span><\/p>\n Initially, Binance CEO Changpeng Zhao responded to these allegations with just one word (or rather one number) – 4.<\/span><\/p>\n 4<\/p>\n — CZ 🔶 BNB (@cz_binance) March 27, 2023<\/a><\/p><\/blockquote>\nRegulators Go After Binance’s Crypto Derivatives Business<\/span><\/h2>\n
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Binance CEO’s Response To The CFTC Lawsuit<\/span><\/h2>\n
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