CFTC Chair Rostin Behnam Reprimand Binance For Deliberately Breaking US Laws
Commodity Futures Trading Commission Chairman Rostin Behnam reprimanded Binance for intentionally breaking regulatory rules, reported Bloomberg.
Behnam criticized Binance and CEO Changpeng “CZ” Zhao for failing to comply with US laws and keeping Americans off its exchange as promised by its leaders.
Binance Deliberately Broke US Laws: CFTC Chair Rostin Behnam
During a Princeton University event, CFTC Chairman Rostin Behnam argues Binance’s executives are “not unsophisticated individuals.” They have started large companies, but offering futures contracts and derivatives to US customers without registering with the regulator.
“These are not unsophisticated individuals. They are starting large companies and offering futures contracts and derivatives to US customers.”
On March 27, the CFTC filed charges against Binance, its CEO Changpeng Zhao, and related parties for violating US laws by illegally offering trading and derivatives services to U.S. customers. CFTC alleged Binance for wrongdoing concerning private messages, failure to enforce geoblocking, and knowledge of illegal customer activity.
CFTC Chairman Rostin Behnam asserts that Binance has deliberately broke rules. Binance offered derivatives trading in the US despite a clear understanding of registering with the CFTC before offering such contracts.
Moreover, CFTC Chair also reiterated that Bitcoin, Ether, and stablecoins such as USDC are commodities. CFTC defines Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) as commodities in the latest crypto fraud and misappropriation case against Deutsche Bank investment banker Rashawn Russell.
Earlier, Rostin Behnam made it amply clear that they would be going hard in their case against Binance for violating U.S. regulations. Binance is under strict scrutiny from the Internal Revenue Service, federal prosecutors, Securities and Exchange Commission (SEC).
Binance CEO CZ is disappointed with the charges made by the CFTC and has shown intentions to work with the regulator and comply.
Binance Trading Volume Dips After CFTC Lawsuit
Over the past few years, Binance recorded higher derivatives trading volume in the U.S. hours (13:00-20:00 UTC) in comparison to other hours. However, derivatives trading volumes are dropping during U.S. hours since the CFTC lawsuit.
Binance’s trading volume also fell after the crypto exchange ended the zero-fee Bitcoin trading for all trading pairs except TrueUSD (TUSD), with the BTC-USDT pair falling 90%.
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