CFTC Declares Firm Action Against Crypto Exchanges Flouting Trading Regulations

In a strong stance, the U.S. The Commodity Futures Trading Commission (CFTC) has reaffirmed its steadfast commitment to chasing down cryptocurrency exchanges that breach established trading regulations.

The CFTC makes it clear that it won't accept the use of VPNs or any strategies aimed at circumventing KYC regulations. Even non-U.S. entities are not exempt from the commission's scrutiny.

Binance Faces $4.3 Billion in Penalties as Former CEO Admits Guilt

The CFTC has aggressively pursued Binance , a major player in the cryptocurrency exchange market, finds itself in a significant legal predicament. The former CEO, Changpeng Zhao, has admitted guilt and resigned from his position.

Binance is expected to face substantial financial penalties, including $50 million originating directly from Zhao himself. A considerable fraction of these fines pertains to the platform's allowance for U.S. customers to engage in trading unregistered crypto derivatives.

Access to U.S. Customers is a Privilege, Not an Entitlement

CFTC Commissioner Christy Goldsmith Romero stresses that there is absolutely no tolerance for non-compliant practices in U.S. markets.

The CFTC considers access to U.S. customers a privilege rather than an entitlement, and it is ready to vigorously pursue exchanges that disregard trade laws. The commission will adopt a stringent approach against the use of VPNs and any attempts to bypass KYC obligations.

CFTC Main Commitment

CFTC Commissioner Caroline D. Pham reiterates the commission's international scope, clearly stating that it will actively pursue non-U.S. entities that engage in misconduct.

This assertive approach comes in the wake of ongoing legal proceedings against SBF, the founder of FTX , who is facing a series of serious charges, including conspiracy to commit money laundering, which could lead to significant legal repercussions.