Crypto Fight to Heat Up at CFTC, “Access to US Customers Is a Privilege”


Firms dealing in digital assets should expect heightened monitoring from the US Commodity Futures Trading Commission (CFTC), which has said that doing business with US clients is a privilege.

The US Commodity Futures Trading Commission has no plans to loosen its grip on cryptocurrency companies and will instead tighten regulation across the board. Foreign corporations accessing American clients is a “privilege,” not a right, according to the regulator.

The CFTC has said this week that it would be actively pursuing former Binance CEO Changpeng Zhao and the cryptocurrency exchange.

On November 24th, CFTC Commissioner Christy Goldsmith Romero reportedly said, “There are no pirate ships in US markets,” and then went on to say: “Receiving business from the United States is an honor, not a guarantee.”

These remarks follow CZ’s agreement to pay $50 million in penalties, which was announced earlier in the week. Also, for money laundering and noncompliance, Binance was fined $4.3 billion.

Since Binance let US consumers to trade unregistered crypto futures, the CFTC will get a share of that payment.

The official went on to say that the government would keep up its “aggressive pursuit of crypto exchanges” that break trade regulations.

Also, Goldsmith made it clear that hiding one’s IP address via a virtual private network (VPN) would not be tolerated. Tightening crypto restrictions would also not accept attempts to evade US KYC (know-your-customer) standards.

Binance was hit with a significant charge by the US Treasury Department for reportedly facilitating transactions from cybercriminals, terrorist groups including Hamas and the Islamic State, and Al Qaeda.

Similar to the FTC, the SEC has promised to increase its crackdown on cryptocurrency. Kraken, a cryptocurrency exchange, was sent yet another complaint by the government only last week. Additionally, it is engaged in other ongoing legal disputes with Binance, Ripple, and Coinbase.

The market has made a full recovery after the chaotic news stream of this week. Market cap fell somewhat in the middle of the week but has since recovered to its pre-disaster levels.

Friday morning Asian markets are flat, with a total market value of $1.47 trillion. Additionally, the trading values of several digital assets are the greatest they have been since May 2022.

This is happening as the United States government is putting more and more regulatory pressure on the cryptocurrency industry, proving once again that crypto is global.

Also Read: Crypto whales spend all their money as the top 200 wallets collect $125 billion

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