US CFTC Cracks Down on Crypto Exchanges Violating Trading Laws

Following the conclusion of the extensive investigation and pursuit of cryptocurrency exchange giant Binance, reports suggest that the U.S. Commodity Futures Trading Commission (CFTC) now intends to pursue other platforms that violate trading laws.

Despite experiencing a significant unforeseen event, the cryptocurrency industry has effectively mitigated the impact and is now observing signs of price recovery.

CFTC to Intensify Crypto Crackdown

Binance, the world’s largest crypto exchange by trading volume, settled with the US Department of Justice earlier this week without admitting guilt, but it had to pay a large fine of $4.3 billion. In this same case, the former Binance head Changpeng Zhao also pled guilty to the charges against him, including breaching the anti-money laundering law, effectively resigning from his position as the CEO.

Following the recent mind-boggling events, reports suggest that the coming years will likely be challenging for crypto.

After the events, CFTC Commissioner Christy Goldsmith Romero highlighted that there would be zero tolerance for any attempts to bypass the KYC rules. Romero declared, emphasizing the agency’s determination, “There are no pirate ships in U.S. markets” and “access to U.S. customers is a privilege, not a right.”

This aggressive crackdown affects both domestic and alien companies alike. Commissioner Caroline D. Pham noted, “It should be crystal clear that the CFTC will not stop in its pursuit of non-U.S. entities.”

As the CFTC seemingly increases its efforts against crypto projects, the SEC, America’s securities watchdog, continues its witch hunt against Ripple, Kraken, Binance, and Coinbase.

A Recovery in Crypto Markets

Meanwhile, the crypto market notes some major recovery today, a few days after taking a sharp nosedive following the troubling Binance news. Most cryptocurrencies, including Binance’s BNB Coin, show positive price momentum.

Being the most prominent and largest digital asset, Bitcoin dipped to a low of $35.9K when the news about Binance’s $4 billion fine and guilty plea came to light. However, BTC is trading at a high value of $37.5K when writing this report. A similar pattern was noted in Ethereum and the crypto market in general.

Reports indicate that most crypto assets are now hitting heights last seen in May 2022 despite the market suffering a major black swan event.