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CFTC Investigates Insider Trading On Binance Crypto Exchange

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CFTC Investigates Insider Trading On Binance Crypto Exchange

Binance has problems with regulators in the United States, and this could be the worst confrontation with government agencies.

The Bloomberg report emphasizes that the US Commodity Futures Trading Commission (CFTC) is currently eyeing the cryptocurrency exchange over allegations of possible insider trading and market manipulation.

Rumors of a similar first-quarter CFTC investigation were dismissed by Changpeng Zhao as untrue. Recall that the crypto exchange has a separate subsidiary Binance.US, but, most likely, the authorities paid attention to the global platform Binance Holdings.

Investigators are examining whether the leaders of the crypto exchange made profits based on insider trading. It is believed that the CFTC has already contacted potential witnesses. The first investigation by the CFTC concerning derivatives trading, which the cryptocurrency exchange is not authorized to carry out in the United States.

Then the representative of the exchange noted that if the internal security service identifies the violator, the dismissal will be the least trouble that a person will face. Despite the fact that the crypto exchange has maintained a similar position throughout this time, it is assumed that more detailed information will be required from it.

Over the past two quarters, Binance has faced grievances from nearly a dozen countries issuing warnings about non-compliance and providing services without the necessary government approval. Recently, Singapore, which is seen as a crypto hub and a hotspot for crypto exchanges, added Binance’s main site to the list of questionable platforms, although similar exchanges continue to offer services.

Now the crypto exchange is taking a number of measures to resolve the situation, including by stopping the issuance of its exchange token and trading cryptocurrency derivatives in Europe, Hong Kong, and South Korea.

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