CFTC Classifies Ethereum and Litecoin as Commodities in KuCoin Case
Highlights
- Ethereum and Litecoin classified as commodities in CFTC's complaint against KuCoin.
- CFTC alleges KuCoin engaged in illegal commodity transactions without proper registration.
- The regulatory body demands disgorgement, civil penalties, and permanent bans from KuCoin.
The Commodity Futures Trading Commission (CFTC) has complained about the entities that own KuCoin. The allegation calls attention to the illegal transactions involved in off-exchange commodity futures activities. KuCoin is said to have been employed in soliciting and accepting orders of different commodity transactions without CFTC registration. This action highlights the intention of the regulatory body to ensure compliance in the digital asset area.
KuCoin allowed commodities trading as per CFTC. This operation made the exchange fall under the supervisory scope of CFTC. It required KuCoin to register with the commission and comply with all applicable regulations. The complaint requests relief, including disgorgement, civil penalties, and permanent trading and registration bans.
CFTC Classifies Ethereum and Litecoin as Commodities
The complaint of the CFTC against KuCoin is a milestone in the determination of digital assets’ classification. The CFTC’s complaint becomes an explicit recognition of Ethereum and Litecoin as commodities by including them. This categorization has wide-ranging regulatory implications for digital assets. Exchanges that handle these assets need to follow strict CFTC regulations.
The CFTC’s actions are part of a broad regulatory emphasis on adherence within the cryptocurrency sector. KuCoin is required to provide a host of remedies by the commission, one of which is a permanent injunction against future violations. This underscores the extent to which the CFTC takes seriously the enforcement of regulatory compliance in the digital asset market.
DOJ, CFTC Pursue Crypto Exchanges for Legal Compliance
The CFTC’s action against KuCoin comes after the DOJ filed a related lawsuit. The suit filed by the DOJ against the exchange and its co-founders alleged that the latter had broken the Bank Secrecy Act. Claims cover the lack of an efficient know-your-customer (KYC) policy and the transfer of more than $4 billion in questionable funds.
The case of KuCoin has nothing unique to it, such as when the government acts on a cryptocurrency exchange. Earlier, KuCoin was settled by the New York Attorney General’s office for $22 million over related charges. More so, DOJ and CFTC also had their eyes on Binance, which is yet another one of the leading crypto exchanges in a large settlement regarding anti-money laundering shortcomings. This is an example of the increasing regulatory oversight of cryptocurrency exchanges and the significance of KYC and anti-money laundering policy compliance.
Read Also: Circle Expands USDC with CCTP to Solana Ecosystem
- Breaking: $8 Trillion Morgan Stanley Opens Bitcoin Investments to All Wealth Clients
- Bitget Strengthens On-Chain Rewards Push With Early Hunter Airdrop Launch
- Fed’s Chris Waller Reiterates Support for Rate Cuts but Urges Caution On Pace
- Tom Lee’s Bitmine Immersion (BMNR) Adds Another $103M ETH to its Ethereum Stash
- Bitcoin Price Flashes Top Signal After Rejection At $125K
- Here’s Why XRP Price May Have a Zcash-Like Surge
- $TAPZI Price Prediction: What’s Ahead of the $TAPZI token Presale?
- Cardano Price Targets $2 as Hydra 1.0 Ignites New Era of Speed and Adoption
- Dogecoin Price Prediction as $23M Leaves Exchanges—Is the Parabolic Phase Beginning?
- Pi Network Price Collapses as Analyst Proposes Turnaround Tweaks
- Solana (SOL) Price Prediction: Analyst Eyes $1,300 as SOL DAT Company Plans 5% Supply Acquisition
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
