Head of CFTC accuses Binance of Willful Violation of Regulations

Head of CFTC accuses Binance of Willful Violation of Regulations

Altcoin news, News

Despite the exchange and its CEO being sued last month over alleged violations of derivatives trading regulations, Binance, the largest cryptocurrency exchange in the world, is once again under scrutiny from the U.S. derivatives regulators.

Rostin Behnam, the chairman of the Commodity Futures and Trading Commission (CFTC), ridiculed Binance Holding Ltd., the largest cryptocurrency exchange, at a Princeton University event on Thursday for complying with US laws, saying, “These are not unsophisticated people.”

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Behnam also stressed, according to a Bloomberg report, that Binance deliberately violated the rules governing derivatives trading and that “They are starting large companies and offering futures contracts and derivatives to U.S. customers.”

The CFTC sued Binance and its CEO, Changpeng Zhao (CZ), last month for violating the rules governing trading in derivatives. Binance was required, among other things, to register with the regulatory body and, as was already mentioned, to prevent American cryptocurrency users from using its exchange.

Rostin Behnam asserted that stablecoins and Ether, the second-largest cryptocurrency, are “commodities.” Additionally, he added, cryptocurrency firms must register with the CFTC and adhere to its regulations if they want to offer future contracts in the United States.

Compiled by Coinbold

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