Bainance is the subject of a new study by the US Securities and Exchange Commission (CFTC). The commission wants to know whether Bainance Exchange has allowed American traders to use the platform.
to the the report Anonymous sources have reported that the US Commodity Futures Trading Commission is investigating the Binance digital currency exchange. The reason for this study is the possibility of some transactions by American investors in the Bainance platform.
Bainance is not registered with the US Securities and Exchange Commission. The commission is responsible for regulating the buying and selling of financial derivatives in the United States. The Futures Trading Commission is concerned that Bainance allowed him to do so without notice. However, Bainance has not been charged with wrongdoing, and those close to the case believe the investigation may not lead to action.
According to the US Commodity Futures Trading Commission, digital currencies are like commodity bitcoins. As a result, the US Securities and Exchange Commission believes it should have the power to oversee these assets; Therefore, the Commission should directly monitor any transactions involving futures or derivatives.
Changpeng Zhao, CEO of Bainance, tweeted in response to the news:
This is not a bullish market without fear, uncertainty and doubt. Ignore fear, uncertainty and doubt and move on.
Bainance has blocked its website for US residents. The exchange has a separate site for US-based traders that complies with US law.
David Princay, CEO of Bainance, declined to comment directly on the news of the Securities and Exchange Commission’s investigation in an interview with Dan Roberts, Editor at the Club House, but Bainance told non-US citizens that Using their smartphones, they have accessed and observed Bainance. He said:
We use these techniques to go beyond regulatory standards.
The research comes as regulators question the role of regulators in the digital currency industry.
At the time of writing, the Securities and Exchange Commission (SEC) is embroiled in a legal dispute with Ripple, the company behind the XRP digital currency. Meanwhile, Arthur Hayes, CEO of BitMEX, is in talks with US officials over allegations of anti-money laundering.
In addition, US Treasury Secretary Janet Yellen has views on bitcoin that have not been to the liking of the majority of the digital currency industry. He described Bitcoin, the flagship digital currency, as a “highly speculative asset” and expressed concern about its connection to illicit finance.
However, there are also positive signs for those interested in the currency code. Anthony Scaramucci, founder of Skybridge Capital and former White House communications director, believes the United States may see a Bitcoin exchange fund by the end of the year. In addition, Gary Gensler, Biden’s chosen choice to chair the Securities and Exchange Commission, is familiar with this topic because of his one-on-one teaching at MIT on digital currency and the Blockchain.