The US Commodity Futures Trading Commission (CFTC), which was investigating whether Bainance illegally allowed Americans to use the exchange, is now investigating domestic trading claims at the exchange.
to the Report According to Bloomberg, the US Commodity Futures Trading Commission is investigating Bainance Exchange in connection with domestic transactions. The commission has previously launched an investigation into allowing American users to use the Binance platform.
The report relies on statements from informed and anonymous sources, stating that the US Futures Trading Commission has entered the case. The CFTC believes that it has the right to intervene in cases involving market manipulation or fraud. It is worth noting that the US Futures Trading Commission also has the authority to review issues such as futures trading on the global Bainance platform. There are no such cases in the American branch of Bainance.
Bainance Exchange is currently under investigation by the CFTC, the commission’s inquiry into whether the exchange illegally allowed the United States to use its services. The Department of Justice and Internal Revenue Service (IRS) are also reviewing the company’s activities, according to a report released in May.
Of course, Bainance’s problems go far beyond the United States. The UK Financial Strategy Authority (FCA) launched its work in June and issued a warning to users about Binance Markets Limited. Bainance Markets was recently acquired by Bainance and renamed. The company hoped to become the UK’s only digital currency exchange.
The situation on the Bainance Legislature has worsened since July, when the Cayman Islands Treasurer declared that the Bainance Exchange was not allowed to operate as a licensed digital currency exchange in the Caribbean.
Binance Exchange, registered in the Cayman Islands, responded to the statement as follows:
Bainance .com has not launched a digital currency exchange outside the Cayman Islands. However, we have institutions that are registered under the laws of the Cayman Islands, which carry out activities that are authorized by law and have nothing to do with digital currency exchange activities.
Other financial regulators, including Italy, Singapore, the Netherlands and Japan, have targeted subsidiaries of the Binance Group of Companies.
This week, Chang Peng Zhao, CEO of Bainance, acknowledged that the company needed a centralized entity to work soundly with regulators. However, this may help allay the concerns of agencies that object to the company’s unclear operating structure; But it is unlikely to help the money changer fight domestic trading claims.
A Bainance spokesman said in a statement:
Domestic transactions have no place in Bainance.
He vowed to use his security team to question those involved in such behavior, and to end the process with minimal consequences.