US and China try to smash Binance, SBF's $40M bribe claim : Asia Express
Our weekly East Asian news roundup features the most important developments in the industry.
Secret American Binance UsersOn March 27, the U.S. Commodity Futures Trading Commission (CFTC), Binance and its founder Changpeng Zhao, allegedly deliberately circumvented federal law and operated an illegal digital asset exchange. In the 74-page complaint, the CFTC claimed that despite the exchange's public stance to ban US users, internal documents suggest that at least 20% to 30% of the exchange's traffic came from US customers. . This equates to nearly three million suspected US users by mid-2020.
Crypto exchanges must register with the CFTC or the before soliciting US clients. However, the CFTC alleges that Binance ignored this decision because its executives claimed that the regulations were "unreasonable" in the context of Binance's corporate structure and that it was more "profitable" to simply circumvent them. .
Since the allegations surfaced, Chicago-based quantitative trading firm Radix Trading has confirmed that it is one of three high-volume trading firms incorporated by Binance and listed in the CFTC complaint. In an official, Binance called the CFTC lawsuit "unexpected and disappointing".
Founded in China by CZ in 2017, Binance has quickly become the largest crypto exchange in the world thanks to its low-cost trading mechanisms and wide range of product offerings. However, the exchange has also come under scrutiny from regulators due to allegedly lax know-your-customer and anti-money laundering measures. Among many items, the CFTC is seeking restitution of revenue generated from commercial activities of US users, civil monetary penalties, and a permanent injunction.
From heated diplomatic wrangling over human rights issues to feather-ruffling in the South China Sea, the United States and China, two major superpowers, often find little common ground in business daily worlds. However, it seems the two have finally found an entity worthy of mutual disdain: Binance.
Around the same time, the CFTC unveiled its investigation of millions of allegedly undisclosed US users on Binance, a March 23 report from CNBC that alleged Binance employees or volunteers shared techniques to Mainland China users to evade the exchange's KYC verification.
Techniques shared include using fake residential addresses, VPNs, non-Chinese affiliate email addresses to create an account and then linking it to a Chinese national ID card.
Cryptocurrency exchanges have been banned in China since 2017, with its websites blocked and major social platforms banning searches for keywords containing “Binance”.
The same week, a Financial Times article alleged that Binance has significant ties to mainland China despite relocating in 2017. Speaking on the matter, a Binance spokesperson told Cointelegraph that Binance “ does not operate in China and neither do we". technology, including servers or data, based in China" and "we strongly reject claims to the contrary".
Our weekly East Asian news roundup features the most important developments in the industry.
Secret American Binance UsersOn March 27, the U.S. Commodity Futures Trading Commission (CFTC), Binance and its founder Changpeng Zhao, allegedly deliberately circumvented federal law and operated an illegal digital asset exchange. In the 74-page complaint, the CFTC claimed that despite the exchange's public stance to ban US users, internal documents suggest that at least 20% to 30% of the exchange's traffic came from US customers. . This equates to nearly three million suspected US users by mid-2020.
Crypto exchanges must register with the CFTC or the before soliciting US clients. However, the CFTC alleges that Binance ignored this decision because its executives claimed that the regulations were "unreasonable" in the context of Binance's corporate structure and that it was more "profitable" to simply circumvent them. .
Since the allegations surfaced, Chicago-based quantitative trading firm Radix Trading has confirmed that it is one of three high-volume trading firms incorporated by Binance and listed in the CFTC complaint. In an official, Binance called the CFTC lawsuit "unexpected and disappointing".
Founded in China by CZ in 2017, Binance has quickly become the largest crypto exchange in the world thanks to its low-cost trading mechanisms and wide range of product offerings. However, the exchange has also come under scrutiny from regulators due to allegedly lax know-your-customer and anti-money laundering measures. Among many items, the CFTC is seeking restitution of revenue generated from commercial activities of US users, civil monetary penalties, and a permanent injunction.
From heated diplomatic wrangling over human rights issues to feather-ruffling in the South China Sea, the United States and China, two major superpowers, often find little common ground in business daily worlds. However, it seems the two have finally found an entity worthy of mutual disdain: Binance.
Around the same time, the CFTC unveiled its investigation of millions of allegedly undisclosed US users on Binance, a March 23 report from CNBC that alleged Binance employees or volunteers shared techniques to Mainland China users to evade the exchange's KYC verification.
Techniques shared include using fake residential addresses, VPNs, non-Chinese affiliate email addresses to create an account and then linking it to a Chinese national ID card.
Cryptocurrency exchanges have been banned in China since 2017, with its websites blocked and major social platforms banning searches for keywords containing “Binance”.
The same week, a Financial Times article alleged that Binance has significant ties to mainland China despite relocating in 2017. Speaking on the matter, a Binance spokesperson told Cointelegraph that Binance “ does not operate in China and neither do we". technology, including servers or data, based in China" and "we strongly reject claims to the contrary".
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