News

US CFTC Warns Crypto Exchanges, Says Binance Is Just the Beginning

CFTC said that it would continue to maintain a robust approach in dealing with crypto exchange and their dealings with customers.
Published by
US CFTC Warns Crypto Exchanges, Says Binance Is Just the Beginning

Two days after Binance’s $4.3 billion settlement announcement with regulators, the US CFTC has issued a stern warning to other crypto exchanges hinting at similar action ahead.

US CFTC on Binance

On Tuesday, Changpeng Zhao (CZ) admitted guilt and stepped down as CEO. Binance shall settle fines exceeding $4.3 billion, with $50 million contributed by the former CEO. Part of this sum will address allegations raised by the Commodity Futures Trading Commission, related to Binance permitting U.S. customers to engage in trading unregistered cryptocurrency derivatives.

Speaking on the development further, CFTC Commissioner Christy Goldsmith Romero added: “There are no pirate ships in US markets” and that “access to US customers is a privilege, not a right.”

Goldsmith emphasized the CFTC’s commitment to maintaining a robust approach against crypto exchanges that breach trading regulations. He highlighted a zero-tolerance policy for tactics such as VPN usage or any attempts to evade KYC rules, including superficial pop-up queries asking users to confirm they are not located in the U.S.

In a distinct statement, CFTC Commissioner Caroline D. Pham affirmed the CFTC’s global jurisdiction, stating unequivocally that the regulatory body will persist in its efforts against non-U.S. entities.

Learning from FTX’s Episode

Soon after the development, Binance founder Changpeng Zhao stepped down as the CEO with Richard Teng taking over his position. CZ also meets the same fate as that of his rival and disgraced FTX founder Sam Bankman-Fried, and is facing charges of breaching the US anti-money-laundering laws. However, CZ is currently out of custody on a $175 million bond with the final hearing scheduled in February 2024.

The prompt decision follows an extended legal case involving FTX founder SBF, who entered a not-guilty plea to seven felony counts. This also included conspiracy to commit money laundering. SBF is currently held at New York’s Metropolitan Detention Center, anticipating sentencing, with the potential for a maximum prison term of 110 years.

Just a month back, Binance filed for dismissing all accusations by the US CFTC. However, these developments have given the regulator a chance to pursue further action against other exchanges.

Advertisement
Share
Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and 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.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Will Crypto Market Rebound or Crash Ahead as 10X Research Tips Shorting Ethereum?

Bitcoin, Ethereum, XRP, and other altcoins tumbled amid the latest crypto market crash. Over $1.2…

October 31, 2025
  • News

Sam Bankman-Fried Says FTX Was “Never Bankrupt,” Crypto Community Reacts

Sam Bankman-Fried (SBF) team on Friday revealed an estimated $136 billion in petition-date holdings of…

October 31, 2025
  • News

XRP ETF Coming This November 13 As Canary Capital Submits Updated S-1 By Removing Roadblocks

Asset manager Canary Capital has submitted an updated S-1 filing to bring its spot XRP…

October 31, 2025
  • News

Canary XRP ETF Filing Removes SEC Delay Clause, Targets November Launch

Canary Funds has filed an updated S-1 registration for its XRP spot exchange-traded fund (ETF).…

October 31, 2025
  • News

CFTC, SEC Launch ‘New Era of Collaboration’ to Clarify Crypto Rules, End Regulation by Enforcement

The U.S. Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) have entered…

October 31, 2025
  • News

Senate Committee Finalizes Updated Crypto Market Structure Bill Draft, Release Expected In Days

The U.S. Senate committee is set to release an updated draft of the Crypto Market…

October 30, 2025