US authority CFTC allegedly investigating leading crypto

US authority CFTC allegedly investigating leading crypto exchange Binance

Unconfirmed sources reveal that the US authority has launched an investigation into Binance.

The US derivatives trading regulator (CFTC) has reportedly launched an investigation into market-leading crypto exchange Binance for unauthorisedly facilitating crypto trading for American investors on its skin platform.

Accordingly, as Bloomberg reported today (Friday), an anonymous source is said to have alerted the Commodity Futures Trading Commission that Binance Holding was Bitcoin Loophole making its services available to Americans on its main site.

Although no concrete accusation has been made yet, the authority is probably already investigating whether US customers have bought and sold crypto derivatives on Binance’s trading platform.

A Binance spokesperson tells Cointelegraph: „As is our custom for corporate policy reasons, we do not comment on our communications with the authorities. At least we can say that we are always cooperative in our work with authorities around the world and take our legal obligations very seriously.“

As of early 2021, crypto derivatives trading has skyrocketed to new heights, with Binance itself turning over $59 billion in this space at press time.

This more than doubles the value of second-placed Huobi Global

Singapore-based crypto trading platform Bybit recently had to shut down operations in the UK after the UK’s financial regulator, the FCA, imposed a ban on derivatives trading by retail investors.

Binance actually tries to block users with American IP addresses from its own main platform. However, a controversial Forbes article from October 2020 claims that Binance CEO Changpeng Zhao regularly encourages spurned customers to circumvent the blockade with a VPN.