The increased demand for cryptocurrencies has paved the way for many governments to take a deeper look into the industry. Binance, the largest cryptocurrency exchange, seems to be the latest platform under the US government’s purview.
The US government has been receiving immense backlash for its stringent laws against crypto. While several platforms have moved out of the country, others like Binance have rolled out exchanges exclusively for the citizens of the US. Despite this, the Commodity Futures Trading Commission [CFTC] of the United States of America reportedly revealed that the platform was being investigated.
An anonymous source allegedly disclosed that the cryptocurrency platform was being investigated by the CFTC over certain derivative trades carried out by users from the US. While no official statement by the CFTC was released regarding the matter, the source affirmed that Binance wasn’t accused of any wrongdoing.
Speaking about the same, CZ added,
“We’ll continue to improve our compliance. We’ll also work very actively with regulators around the world to improve the compliance standards of the industry.”
Binance’s CZ: “An Investigation Doesn’t Mean They’re Trying To Charge Us”
This investigation came as a shock to several, however, Binance decided to stay quiet about it. But, appearing in an Ask Me Anything [AMA] live stream on Clubhouse, the CEO of Binance Changpeng Zhao went on to address the latest issue. He stated,
“This is a topic that just came up, literally like a few minutes ago or an hour ago. So number one, the news article said there was no, I don’t have it in front of me, there was no “misconduct,” I have to dig it up. So number one there was no report of misconduct from Binance, so the report kind of defeat itself.”
CZ also clarified that an investigation did not mean that the CFTC was trying to charge Binance with something. He went on to say that the “story doesn’t have any teeth.”