(New York) The American financial derivatives regulator, the CFTC, announced in a statement on Monday that it had sued the world’s largest cryptocurrency exchange platform, Binance, as well as its boss Changpeng Zhao, for deliberately circumventing US regulations.
This is a new episode in the offensive launched by regulators, the market policeman in particular (SEC), against the practices of players in the cryptocurrency community. They thus seek to compensate for the absence of legislation to regulate this industry, even if several texts are under discussion in Congress.
In the document filed in federal court in Illinois (north), the CFTC claims in particular that Binance be prohibited from registering and selling certain financial products in the United States.
Asked by AFP, Binance did not respond immediately.
The regulator accuses Binance and several of its executives of having sold products to American customers in violation of United States financial regulations.
According to the CFTC, “Upon instruction from Zhao, Binance recommended that its employees and customers circumvent (regulatory) compliance checks to maximize its profits.”
In particular, Binance has chosen not to ask its American users for proof of identity, as required by financial regulations in the United States.
“For years, Binance has worked actively to keep its business running and avoid compliance” with regulations, CFTC Chairman Rostin Behnam said in the statement.
“This should be a warning to everyone in the digital asset community,” he said.
The authority “will not tolerate willful avoidance of US law,” the official insisted.
In mid-February, the New York State Department of Financial Services ordered Paxos to stop issuing a so-called stablecoin, BUSD, in the name of Binance, a first blow to the platform. .
The SEC argues that BUSD is a financial security and therefore must be registered with it and subject to applicable regulations.
