Bad news for the crypto economy. USA can ban Binancelargest trading platform cryptocurrencies In the world, considering that the company operates illegally in the country.
On Monday, the Commodity Futures Trading Commission (CFTC) announced that it has filed a lawsuit. sue against the main giant in the industry, which has accumulated more than 100 million users worldwide. In this case, he is accused of failing to register his activities with the authorities and “multiple violations” of multiple US financial laws, including those aimed at preventing the use of virtual currencies for money laundering.
As such, authorities have asked an Illinois federal court to fine Binance and permanently ban its registration and trading power.
“opaque” structure
This lawsuit targets the founder and CEO of Canadian-born Chinese billionaire Binance. Changpeng Zhao. US regulators have warned that Binance uses a “deliberately opaque” global corporate structure to evade its own surveillance, fails to require customers to verify their identities, and even advises customers to “evade compliance checks” by authorities using VPNs and shell companies. says he does. Request It also affects the three organizations that carry out these operations. United States of America.
“Binance has known for years that it has violated CFTC rules and has been actively working to both keep money flowing and prevent compliance. This should be a warning that the CFTC will not tolerate deliberate evasion of US law,” he said. Rostin Behnam, Chairman of the CFTC. Binance reportedly violated national laws “to maximize company profits”.
“This complaint is unexpected and disappointing,” Binance replied, reassuring it was working hand-in-hand with the authorities.
The crypto economy is shaking
According to Coinecko, the news has once again put the global cryptocurrency market in the red, which fell 2.8% to $1.17 trillion. Bitcoin, the most reputable cryptocurrency, has lost 1.17% in the last hours, staying below 25,000 euros. In the last five days, the decrease was 4.4%. After a black 2022 down 65%, Bitcoin’s value has increased by almost 62% so far this year.
The indictment against Binance comes a week after the US Securities and Exchange Commission (SEC) warned the crypto trading platform. coin baseAnother giant in the industry that detects potential violations of the law. The potential sanction meant that its value fell by 26% within a week. Authorities have intensified their vigilance on the crypto-asset industry, especially after “mispractice” triggered a drag effect last year. bankruptcy heavyweights like FTX anyone creationamong others.