Binance is being investigated by the Commodity Futures Trading Commission

[Tytanowy Janusz]

https://www.bloomberg.com/news/articles/2021-03-12/crypto-exchange-binance-investigated-by-u-s-over-who-s-trading

Same accusation that Bitmex had few months ago - allowing US citizens to trade derivates ... Damn. How about US will hunt and punish their citizens for trading instead of hunting exchanges for not filtering US citizens well enough ... Ridiculous.
CZ comment:
"It’s not a bull market without some FUD.

Ignore FUD, keep BUIDLing."

[mk4]

Damn. How about US will hunt and punish their citizens for trading instead of hunting exchanges for not filtering US citizens well enough ... Ridiculous.

I am definitely not defending the CFTC here(because fuck em)— but feasibility wise, it just would make a lot more sense for the CFTC to pursue after the honey pot rather than go chasing after all the bees. The latter is going to be almost impossible.

[Tytanowy Janusz]

I am definitely not defending the CFTC here(because fuck em)— but feasibility wise, it just would make a lot more sense for the CFTC to pursue after the honey pot rather than go chasing after all the bees. The latter is going to be almost impossible.

But far more logical. I just cant understand how is it possible that one country forbids something for its citizens and than chase companies not even registered there. Its like small African village prohibits its users from using facebook and next day sue facebook for not blocking them. Collects millions and improves the economy for years. Is it that easy?

[stompix]

CZ comment:
"It’s not a bull market without some FUD.
Ignore FUD, keep BUIDLing."

Yeah, FUD...
That's funny, remember what happened in 2018?

Mar 22, 2018
Nikkei showed irresponsible journalism. We are in constructive dialogs with Japan FSA, and have not received any mandates.

One day later:

We received a simple letter from JFSA about an hour ago. Our lawyers called JFSA immediately, and will find a solution. Protecting user interests is our top priority.

Binance is moving to Europe after crackdowns in Japan, Hong Kong, and China

I'm not going to believe one word that comes out of CZ's mouth, if he says it's FUD then it's 101% true there is an investigation.

[Tytanowy Janusz]

I'm not going to believe one word that comes out of CZ's mouth, if he says it's FUD then it's 101% true there is an investigation.

Same thing was with Bitmex few months ago but we didn't had "investigation news" that day. We had "BitMEX founder arrested" news instead. I agree. There is 101% true there is an investigation but ... its investigation only ... it will take months if not years to end. And what the punishment will be if binance is not allowed in US anyway? How US can force this punishment? I do not have the competence to judge it correctly, but the whole thing seems absurd to me.

[kryptqnick]

I am definitely not defending the CFTC here(because fuck em)— but feasibility wise, it just would make a lot more sense for the CFTC to pursue after the honey pot rather than go chasing after all the bees. The latter is going to be almost impossible.

But far more logical. I just cant understand how is it possible that one country forbids something for its citizens and than chase companies not even registered there. Its like small African village prohibits its users from using facebook and next day sue facebook for not blocking them. Collects millions and improves the economy for years. Is it that easy?

If Binance is blocking US users and the terms mention that people from the US aren't allowed to use this exchange, I think the company is doing enough. At first, I thought Binance actually offered services to US citizens (I think they intended to do so by first complying with all the rules US has to offer, but maybe I remember it wrongly), but if they aren't, it's indeed ridiculous that CFTC is putting its nose in this business. In any case, 'investigation' is just a loud word that will probably not result in any serious action. After all, even the article mentions that Binance is not accused of misconduct. But such events do spread FUD and are thus unpleasant.

[bassbity]

It was a very ridiculous incident, CZ would have taken it as a joke, we firmly believed that the accusation would have no effect, because the CFTC would be humiliated first. If they allow such accusations which are simply a matter of diversion flooding into a large number of markets.

[stompix]

How US can force this punishment?

That's like the question about where the US waters end, with the answer being where the sea is at 50 feet deep.   (that's around the minim of what an aircraft carrier needs to safely navigate). The whole thing of what can they do is just a question of how much and how interested are they in doing something, from BTC-E to Megaupload or AlphaBay, there is almost no safe place for anyone as long as they want to shut it down, one exception might be China but probably Binance would be in more trouble there than in the US.

In the end, it's pretty simple, obey the rules and kiss asses the way Coinbase is doing and you're safe, centralized exchanges are and will always be easy prey, if you want to be a rebel switch to true p2p, but you won't make even 1% of the money this way.

Anyhow, I don't think it will be something really serious, yet, this is just an investigation on compliance probably a small fine as a warning for others and Binance will hand over to the IRS their logs to keep relations on good terms.

[amishmanish]

It is funny that the US almost always does it in the name of its citizens. Going after crypto exchanges because they are fleecing citizens or selling them securities. Going after Oil-rich nations to keep Americans safe. I think there must be a lot of American regulators who probably truly want to "protect" American investors and are passionate about stopping crypto. Those people are just doing their jobs.

Sadly, they always miss the bigger picture that instead of restraining their poorest, they need to better monitor and control their richest.

[dothebeats]

Idk how the investigation would turn up, although I'm sure Binance have some loopholes that allowed US citizens to use the platform because 'profits'. CZ has been evasive on crackdowns on countries Binance served in the past, which makes me think that there is really something wrong with the way they do business, or they just don't comply with the regulations at all. I'm all in for crypto flourishing and all, but companies not complying with regulations just to gain profits pushes us further back.

I'm not saying that every platform follow Coinbase's steps, but at least they're doing it legally (albeit screwing their customers over lol).

[mk4]

But far more logical. I just cant understand how is it possible that one country forbids something for its citizens and than chase companies not even registered there. Its like small African village prohibits its users from using facebook and next day sue facebook for not blocking them. Collects millions and improves the economy for years. Is it that easy?

Because they can. So why wouldn't they do it? Companies are required to follow governmental demands to some extent when requested. Like I said, it's the far easier way to do it and a lot less resource-intensive.

[masterzino]

https://www.bloomberg.com/news/articles/2021-03-12/crypto-exchange-binance-investigated-by-u-s-over-who-s-trading

Same accusation that Bitmex had few months ago - allowing US citizens to trade derivates ... Damn. How about US will hunt and punish their citizens for trading instead of hunting exchanges for not filtering US citizens well enough ... Ridiculous.
CZ comment:
"It’s not a bull market without some FUD.

Ignore FUD, keep BUIDLing."

I hope that even if some allegations pop-ups against CZ, Binance will stay stable as it was BitMex during Arthur Hayes, Benjamin Delo, and Samuel Reed arrests.

CZ is right, CFTC /SEC/All the abbreviations are doing everything possible to bring us bad news, but we will keep BUIDing!

[Tytanowy Janusz]

Looks like binance knew exactly whet they were doing employ Sen. Max Baucus few days before this case. He already take voice in this case saying that cftc looks at a lot of other crypto exchanges right now mostly because whole market is booming. And binance has not been charged for anything. We have only investigation here.

What you guys think?

https://www.bloomberg.com/news/videos/2021-03-12/cftc-should-review-crypto-because-it-s-exploding-baucus-video

[bryant.coleman]

What do you guys really expect after statements from Janet Yellen and Elizabeth Warren? The indications are very clear. The Biden administration is not comfortable with cryptocurrencies, at a time when multi-trillion stimulus measures are being adopted. They are trying to wage an indirect war on cryptocurrency by targeting exchanges such as Binance. They know that they can't directly target crypto.