Binance, the largest cryptocurrency exchange in the world, has submitted a written response to the court accusing the US Commodity Futures Trading Commission (CFTC) of suing it in order to extend its reach beyond the US in terms of cryptocurrency Regulation. The CFTC filed a lawsuit against Binance in March for alleged derivatives trading violations. Binance argues that the CFTC’s claims are unfounded due to a jurisdictional issue and accuses the agency of attempting to regulate foreign individuals and companies that operate outside of the US.
The CFTC claims that Binance broke the law by offering services to US residents through its international platform, Binance.com, instead of its US-based platform, Binance US. Binance US only offers spot trading and does not offer crypto derivatives trading. The international platform, on the other hand, offers derivatives trading with much higher volumes. The CFTC accuses Binance of allowing US residents to trade crypto derivatives on the international platform, which they should not have access to. Binance denies these allegations and argues that the CFTC is trying to extend its power outside of the US.
Crypto regulation varies from country to country, and the US has strict rules for offering financial derivatives trading to US citizens. Binance US and Binance.com have not obtained authorization from the CFTC because the former does not offer derivatives trading and the latter should not offer services to US citizens. Binance argues that if it has never offered the derivatives trading service to US citizens, it has not violated any regulations. The company is asking the court to dismiss the CFTC’s lawsuit, claiming that its motive is to expand its power overseas. The outcome of the case is uncertain and could drag on for quite some time.
In addition to the legal issues, Binance has lost significant market share globally during the first three quarters of the year. Some users have migrated to other platforms due to the company’s problems with various authorities around the world. However, these problems have not caused major technical issues for the platform, except for the temporary suspension of deposits and withdrawals in euros and the closure of debit cards in Europe. Binance is transitioning from a period of prioritizing growth over compliance to a time when it can focus on compliance..
#Binance #accuses #CFTC #exploiting
The CFTC claims that Binance broke the law by offering services to US residents through its international platform, Binance.com, instead of its US-based platform, Binance US. Binance US only offers spot trading and does not offer crypto derivatives trading. The international platform, on the other hand, offers derivatives trading with much higher volumes. The CFTC accuses Binance of allowing US residents to trade crypto derivatives on the international platform, which they should not have access to. Binance denies these allegations and argues that the CFTC is trying to extend its power outside of the US.
Crypto regulation varies from country to country, and the US has strict rules for offering financial derivatives trading to US citizens. Binance US and Binance.com have not obtained authorization from the CFTC because the former does not offer derivatives trading and the latter should not offer services to US citizens. Binance argues that if it has never offered the derivatives trading service to US citizens, it has not violated any regulations. The company is asking the court to dismiss the CFTC’s lawsuit, claiming that its motive is to expand its power overseas. The outcome of the case is uncertain and could drag on for quite some time.
In addition to the legal issues, Binance has lost significant market share globally during the first three quarters of the year. Some users have migrated to other platforms due to the company’s problems with various authorities around the world. However, these problems have not caused major technical issues for the platform, except for the temporary suspension of deposits and withdrawals in euros and the closure of debit cards in Europe. Binance is transitioning from a period of prioritizing growth over compliance to a time when it can focus on compliance..
#Binance #accuses #CFTC #exploiting
