US CFTC Cracks Down on Crypto Exchanges Violating Trading Laws – After completing a thorough investigation into the cryptocurrency exchange giant Binance, there are indications that the U.S. Commodity Futures Trading Commission (CFTC) plans to target other platforms breaching trading laws. Despite facing a substantial unforeseen event, the cryptocurrency industry has successfully minimized the impact and is currently witnessing indications of price recovery.
The largest cryptocurrency exchange globally, Binance, resolved its case with the US Department of Justice this week, not acknowledging guilt but paying a substantial fine of $4.3 billion. Simultaneously, the former Binance head, Changpeng Zhao, admitted to charges, such as violating anti-money laundering laws, resulting in his resignation as CEO.
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In the aftermath of these remarkable developments, there are indications that the upcoming years could pose challenges for the cryptocurrency industry. After the incidents, CFTC Commissioner Christy Goldsmith Romero emphasized a strict stance of zero tolerance towards any efforts to circumvent KYC rules.
Romero declared, emphasizing the agency’s determination, “There are no pirate ships in U.S. markets” and “access to U.S. customers is a privilege, not a right.” This aggressive crackdown affects both domestic and alien companies alike. Commissioner Caroline D. Pham noted, “It should be crystal clear that the CFTC will not stop in its pursuit of non-U.S. entities.”
While the CFTC appears to intensify its actions against cryptocurrency projects, the SEC, the U.S. securities watchdog, persists in its investigations targeting Ripple, Kraken, Binance, and Coinbase. In the aftermath of the unsettling Binance news that led to a sharp market downturn a few days ago, today witnesses a significant recovery in the crypto market. Many cryptocurrencies, including Binance’s BNB Coin, exhibit positive price momentum.
Bitcoin, the leading digital asset, experienced a drop to $35.9K upon the revelation of Binance’s $4 billion fine and guilty plea. However, as of this report, BTC is trading at a robust $37.5K. A similar trend is observed in Ethereum and the overall cryptocurrency market. Despite a significant black swan event affecting the market, reports indicate that most crypto assets are now reaching levels not seen since May 2022.