The largest Crypto exchange is reportedly under investigation by the U.S CFTC
March 13, 2021 4:32 AM
Binance who is currently the largest crypto exchange has been reportedly under investigation over concerns it may have encouraged U.S customers to trade on its platform.
The largest cryptocurrency exchange by volume of trades is reportedly being investigated by the Commodity Futures Trading Commission over possible trades made on the exchange by U.S based customers.
According to a Bloomberg report on Friday, Binance Holdings LTD is under investigation by the regulators with likely derivative trades executed by American users on the trading platform.
However, the crypto exchange hasn't been accused of any misconduct just yet. the U.S regulators are digging to uncover if Binance allowed U.S citizens to buy and sell derivatives on the platform.
Derivatives trading rose during the beginning of 2021, with binance having dominated the crypto derivatives trading as it houses $59 billion worth at the time of publication which is said to be twice that of Houbi Global its only closest, competitor.
According to the Financial Conduct Authority ban on retail derivatives trading recently has forced Singapore-based crypto exchange Bybit to close shop in the United Kingdom.
Binance exchange reportedly blocks users from U.S. IP addresses from using their platform. however, according to a controversial Forbes article from October 2020 claiming that Binance founder and CEO, Changpeng Zhao, regularly encouraged users to utilize a VPN.