US federal agency Commodity Futures Trading Commission has started an investigation of leading crypto purchase network Binance. The authority aims to discover if Binance enabled US investors' access to the protocol and purchase derivatives without being listed with the government's supervision.
Related: Binance clients gain access to the platform's payment system
The CFTC views crypto assets like BTC and Eth as commodities and controls their financial contracts. That suggests crypto protocols face strong user security and regulations if US-based people are making activities on them and it doesn't depend on the protocols' locations.
Binance doesn't have a single corporate head office. The exchange isn't suspected of criminality and the legal process is unlikely to result in enforcement action. Referring to the case, Binance founder Changpeng Zhao stated via Clubhouse that the firm operates according to US jurisdictions and has drastic limitations to stop its clients from illegal actions.
CZ also mentioned that the Binance team will keep upgrading compliance by cooperating with regulators on a global scale. Besides, CZ posted a tweet stating that It’s not a bull market without some FUD (Fear, uncertainty, and doubt).
The news follows after the Binance announcement of previous US Senator Max Baucus joining the platform as a regulatory advisor. As the demand for cryptocurrencies has been growing, regulators pay more attention to them.It’s not a bull market without some FUD.
— CZ 🔶 Binance (@cz_binance) March 12, 2021
Ignore FUD, keep BUIDLing.