Binance investigated by CFTC over US offerings

Binance is facing a CFTC probe over whether US residents have accessed the platform to trade cryptocurrency derivatives

Cryptocurrency exchange Binance is currently being investigated by the Commodity and Futures Trading Commission (CFTC) over its alleged derivatives offerings to US residents.

According to a report by Bloomberg, Binance, which is the largest crypto exchange by trade volume, hasn’t been accused of misconduct and that the investigation may not lead to an enforcement action.

This is not the first time the CFTC has probed into cryptocurrency exchanges, with the regulator clamping down on BitMEX in 2019 over its accessibility to those in the US.

Binance CEO Changpeng ‘CZ’ Zhao was quick to dismiss the CFTC probe, labelling it as “FUD” (fear uncertainty and doubt).

On Twitter, CZ wrote: “It’s not a bull market without some FUD. Ignore FUD, keep BUIDLing.”

In 2019 CZ created Binance.US while simultaneously blocking US customers from accessing, however he did admit that some US customers can still slip through the cracks.

“We have always blocked U.S. access, but users do find intelligent ways to get around our block sometimes and we just have to be smarter about the way we block,” he told Bloomberg in an interview in November.

The price of Bitcoin slumped from $56,400 to $55,000 on the news, with the price of Binance’s native token, BNB, dropped by more than 10%.

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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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