The main cryptocurrency exchange platform Binance, as well as its founder Changpeng Zhao, were indicted this Monday by the Commodity Futures Trading Commission, CFTC, for alleged violations of US law regulations.

According to the CFTC, Binance would have evaded obligations by failing to register correctly with the regulatory body.

The CFTC’s investigation into Binance’s actions is joined by the tax agency of the Internal Revenue Service (IRS). This agency was already following the steps of the exchange in order to establish if it has complied with its tax obligations and if it complies with the laws against money laundering.

The CFCT has filed a lawsuit against Binance in a federal court in Chicago that could culminate in heavy monetary penalties as well as a ban on trading in certain sectors.

In parallel, there is speculation about the fact that Binance would have deliberately avoided compliance with regulations to obtain greater benefits.

M.Pino

Source: altonivel

(Reference image source: Sasun Bughdaryan, Unsplash)

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La entrada Binance is sued for violating regulations in the United States apareció primero en Bitfinance.

The US financial regulatory Commodity Futures Trading Commission (CFTC) has requested an investigation into a South African speculative platform and is demanding that it restore $1.7 billion deposited in crypto by its clients.

The Mirror Trading International (MTI) company, according to its official settlement in July 2022, offered its clients a potential return of more than 100 % per year for an algorithm that turned out to be imaginary.

According to the CFTC, the company MTI and its main executive Cornelius Steynberg, admitted “1.7 billion dollars in bitcoins” and a part of those cryptocurrencies are owned by “23,000 US residents”.

The regulatory body reported, through an official statement, that it is “the most important fraud in bitcoins ever prosecuted by the CFTC.” According to information released by some South African media, MTI had some 300,000 users at the time of its suspension.

The MTI platform is currently being investigated and Interpol has issued a global arrest warrant against Cornelius Steynberg, who was arrested in Brazil in December 2021 and is currently awaiting the extradition decision requested by South Africa to bring him to trial in his country.

On the other hand, the CFTC pointed out that there is little chance that MTI investors will be able to recover their money because the “persons involved may not have sufficient funds.”

M. Rodríguez

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Source: bancaynegocios.com

La entrada US financial regulatory agency investigates crypto fraud apareció primero en Bitfinance.

The US Senate is studying the bipartisan bill called the Responsible Financial Innovation Act, which would give cryptocurrencies the status of commodities, such as oil or coffee, and would be under the supervision of the Commodities Futures Trading Commission (CFTC).

The bill was introduced by Democratic Senator Kirsten Gillibrand and Republican Senator Cynthia Lummis, who are part of the Senate Committee on Agriculture and the Senate Banking Committee and believe that the Securities and Exchange Commission (SEC) should regulate cryptocurrencies.

Lummis explained that the Responsible Financial Innovation Act is a bipartisan framework that provides “regulatory clarity for agencies tasked with overseeing digital asset markets, provides a strong and tailored regulatory framework for stablecoins, and integrates digital assets into our tax laws. and existing banks.

For her part, Gillibrand pointed out that the bill “will provide clarity to both the industry and regulators, while maintaining the flexibility to take into account the continuous evolution of the digital asset market.”

Cryptocurrencies market, the Wild West

For a long time in the US, the regulation of cryptocurrencies has become what some call a “turf war” because the body that should be in charge of supervising digital currencies is not yet clearly defined.

Cryptocurrency investors believe that the SEC should not “supervise decentralized digital tokens because it doesn’t make any sense.” However, critics of the project point out that granting supervision to the “CFTC is equivalent to leaving the market unregulated.”

SEC Chairman Gary Gensler in 2021 called the crypto market a “Wild West” and admits that digital currencies are similar to stocks and should be treated as such and not commodities.

M. Rodríguez

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Source: themoneypost.io

La entrada US Senate considers regulating cryptocurrencies as commodities apareció primero en Bitfinance.

The United States Commodity Futures Trading Commission (CFTC) punished companies Bitfinex and Tether $ 42.5 million for failing to comply with the commodity exchange law and some regulatory requirements.

The regulator revealed that Tether, the cryptocurrency company of the same name, maintained the backing of the asset pegged to the dollar for only a period of 26 months. Therefore, they consider that the company violated the law by maintaining part of the reserves in non-fiduciary financial instruments and, in addition, combining operating and reserve funds.

According to the information published on the official website of the regulator, the company must cancel 41 million dollars for the claims on the guarantee of the assets, since they argued that the “USDT was fully backed by US dollars.”

On the other hand, Bitfinex must pay 1.5 million dollars for not complying with all the regulatory requirements established by the regulator. In addition, the CFTC ordered the Exchange to implement additional systems that will allow it to prevent illegal commodity transactions.

The regulator’s acting chairman, Rostin Behnam, said they should focus on “expectations of fairness and transparency in the fast-growing and emerging digital asset market.”

It is important to note that the sanction to cryptocurrency companies did not impact their behavior in the crypto market, since both the Leo token, native to Bitfinex, and the tether rate did not have any negative reaction against the dollar.

The G20 calls for more control

The rulers of the countries that make up the G20 are requesting greater control and supervision for stablecoins, tokens issued on blockchain and whose value is linked to an external asset such as national currencies or precious minerals, and are forcing the issuers of these assets to comply with the established standards.

The G20 has declared that the so-called stable cryptocurrencies should not be approved until they comply with all the established requirements and “all the problems associated with this market are resolved.”

M. Rodríguez

Source: es.beincryto.com

La entrada Tether and Bitfinex fined $ 42.5 million apareció primero en Bitfinance.

This March 19, the United States Commodity Futures Trading Commission (CFTC) has issued a fine against Coinbase where it orders the exchange to pay 6.5 million dollars, as the commission expressed in a press release.

The move is due to the fact that, according to the CFTC, Coinbase has spread “reckless, false, misleading or inaccurate reports, as well as laundering operations by a former employee on the GDAX platform” of the exchange.

Investigations started in 2015

Between January 2015 and September 2018, Coinbase carried out operations that affected the market perception of prices and the volume of GDAX. The commission explains in more detail that in August and September 2016 a series of operations were detected that boosted the volume of activity and that these transactions were also related to the Litecoin / Bitcoin pair.

However, in November 2020 the exchange closed its margin trading platform on the 25th of that same month and completely terminated the function in December, once the open positions had expired.

The decision caught the attention of the Commission but Coinbase claimed that its stance was due to “recent guidance” published in March 2020 by the CFTC.

K.Villarroel

Source: beincrypto

La entrada Coinbase receives $ 6.5 million fine from CFTC apareció primero en Bitfinance.