US regulator launches investigation against crypto exchange Binance

Binance Holdings, the largest cryptocurrency exchange in the world by trading volume, reportedly became a target of an investigation launched by the US Commodity Futures Trading Commission. The US regulator is trying to find out whether Binance allowed US citizens to buy crypto derivatives that are banned in the US.

The CFTC reportedly launched an investigation into the Binance crypto exchange activities in order to determine whether a non-registered with CFTC trading platform allowed US citizens to buy and sell crypto derivatives, Bloomberg reports citing informed sources. According to them, the probe is confidential. So far, no charges were filed against the crypto exchange.

As noted by Bloomberg, the CFTC qualifies virtual currencies such as bitcoins and ether as commodities, and therefore cryptocurrency derivatives fall under the purview of the commission.

Binance co-founder Changpeng Zhao said the company is strictly following US laws and complies with requirements to prevent possible money laundering. Furthermore, the exchange is actively working with regulators around the world to improve industry compliance standards in the crypto world, Zhao added. While speaking at the Clubhouse, Zhao declined to comment on the CFTC investigation.

On Twitter, Zhao ironically noted that FUD, that is, fear, uncertainty and doubt, is indispensable in a bull market. Therefore, he recommended that such news should be ignored.

Binance previously reported that it is blocking access for US residents to its website and is using advanced technology to analyze deposits and withdrawals for signs of illegal transactions.

Despite the information about the investigation into the largest crypto-exchange in the world, the bitcoin rate practically did not decrease on March 12.

Via: 2Coinfox.info

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