The US CFTC (Commodity Futures Trading Commission) has warned crypto exchanges that it would take a strict approach to how platforms deal with customers. The CFTC’s warning comes just a few days after Binance CEO Changpeng Zhao (CZ) pleaded guilty to non-compliance with money-laundering laws.
CFTC Commissioner Christy Goldsmith Romero said, ‘There are no pirate ships in US markets.’ Furthermore, Romero added, ‘Access to US customers is a privilege, not a right.’
Also Read: FTX Native Token FTT Surges Over 20% After CZ Leaves Binance.
Romero said there would be no tolerance for tactics such as using VPNs or evading KYC rules. Moreover, users may not skip pop-up queries asking if they are in the US or not, she said.
Additionally, CFTC Commissioner Caroline D. Pham said the CFTC will continue its move against non-U.S. entities.
Other exchanges to meet Binance’s fate?
On Tuesday, Binance CEO CZ pleaded guilty to charges by US authorities and, as a part of the deal, stepped down as CEO. Moreover, the exchange has to pay a fine of $4.3 billion, $50 million of which will come from CZ. Ironically, CZ is close to meeting the same fate as FTX founder Sam Bankman-Fried. However, CZ is currently out with a $175 million bond. The final hearing will take place in February 2024.
Also Read: Binance Sees $1B Outflow Post CZ Resignation Amid US Legal Woes.
Binance had submitted a filing just one month back, dismissing all charges by the US CFTC. However, things did not go in favor of the exchange. Moreover, the regulators now have the opportunity to pursue other crypto platforms in the US. Coinbase is already in a legal battle with the SEC (Securities and Exchange Commission) over the alleged sale of unregistered securities. Ripple was in a similar engagement for many years. However, the courts ruled partially in favor of the crypto firm earlier this year.