The Commodity Futures Trading Commission (CFTC) has taken action against Binance Holdings Ltd for its breached compliance with US laws and regulations. Binance is the world's largest cryptocurrency exchange, offering a platform for traders to trade in digital assets. However, the CFTC has noticed that the company has failed to prevent US citizens from trading on the platform, and has not registered with the regulator as required.

As such, CFTC Chairman Rostin Behnam has publicly sternly warned Binance of its breach in the rule and asked them to take the desired action if they wish to continue its operations in the United States. In addition, other agencies have also been looking into Binance's adherence to the anti-money laundering procedure. Regulatory bodies also found that Binance had enabled unregistered securities to be traded without proper authorization, a violation of SEC regulations.

To address the compliance issues, Gary Gensler, chairman of the SEC, has taken a strong stance against crypto firms, such as imposing a $30 million settlement to Kraken over its staking program. Gensler has emphasized upon the individuals and companies to take necessary steps and ensure that their activities are in line with the applicable rules. He also noted that several digital assets may at times reflect resemblance of unregistered securities, so firms should be vigilantly aware of such circumstances.

With regulatory authorities getting stronger with the time and cryptocurrency giants being held responsible of their actions, it is evident that the markets have become more secure and transparent, with the adherence to the protocols being monitored strictly. As such, this development provides assurance to the users that their investments and trades are done in a safe and transparent environment.



Other News from Today