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Binance’s Reaction to CFTC Lawsuit

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Binance's Reaction to CFTC Lawsuit

Responding to a federal legal lawsuit against Binance that has rocked the crypto industry, the company said the best solution is to continue to protect its users while working with regulators to develop a clear legal framework.

Binance's Reaction to CFTC Lawsuit

Binance’s Reaction to CFTC Lawsuit

“The complaint filed by the CFTC is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years. Nevertheless, we intend to continue to collaborate with regulators in the U.S. and around the world.” – a Binance spokesperson.

On Monday, the Commodity Futures Trading Commission (CFTC) accused Binance – the world’s largest cryptocurrency exchange – of violating trading and derivatives rules, alleging that Binance operated a asset derivatives trading facility in the United States as of at least July 2019, providing US residents access to cryptocurrency futures, swaps, and options.

“We have made significant investments over the past two years to ensure we do not have U.S. users active on our platform. We went from approximately 100 people in our compliance team to around 750 core and supporting compliance personnel today.” – the company said.

For example, Binance says it has recruited regulators and law enforcement in the past and spent more than $80 million on transaction monitoring, market monitoring, and investigative tools to support its compliance program.

Вinance has also implemented a “robust “three lines of defense” approach” to both risk and compliance, including mandatory KYC, blocking users who reside in the United States through banning U.S. IP address and cellular providers, and even preventing deposits and withdrawals from U.S. banks.

“This is the CFTC attempting to strike [a] fatal blow to Вinance. And at first read through, I think they actually have really strong chances here of succeeding in toppling the Вinance empire.” – tweeted Cinneamhain Ventures partner Adam Cochran.

Source

www.decrypt.co

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The author is 28 year old student recently graduated from Celal Bayar University, Faculty of Medicine. Currently he works as a writer and translator for different platforms.

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