Binance Under CFTC Investigating Over Derivate Trading

US Commodity Futures Trading Commission (CFTC) began investigating Binance activities due to concerns that it allows US citizens to trade cryptocurrency derivatives in violation of the law.CFTC is trying to find out if Binance allowed US residents to buy and sell cryptocurrency derivatives. If this is true, then Binance violates US laws since Binance is not registered with the CFTC, the agency said.Binance CEO Changpeng Zhao said the exchange does not have an official headquarters in the US, so the investigation will not lead to enforcement action. The CFTC treats Bitcoin and Ethereum as exchange commodities, which is why futures contracts are under the jurisdiction of the CFTC. Platforms offering such products to US citizens are required to comply with strict regulatory requirements, regardless of their location.Zhao stated that the exchange did not take any action that violates US law. Zhao said that he usually does not comment on interactions with regulators. According to him, this investigation does not mean that the department is trying to bring charges against the exchange.The Binance founder suggested that his competitors might bribe or pressure journalists to publish abusive material containing false information. Zhao cited the example of Forbes, which last year published an article about the “Tai Chi organization” against Binance. Binance later sued Forbes but dropped the claim last month.Zhao added that Binance takes regulatory compliance seriously and is implementing appropriate measures to combat money laundering. The exchange will continue to interact with international regulatory bodies to improve compliance with industry standards.The head of Binance said that the exchange does not allow American traders from accessing its main website, and also uses advanced technologies to detect suspicious activities. However, users can always find clever ways to bypass restrictions. Zhao said regulators are enforcing too strict rules for cryptocurrency firms.After this news, Bitcoin…