The crypto industry and its prominent figures have faced difficult times in recent years.
It is unlikely that the industry will see any improvement anytime soon. That is, at least, the message being sent by policymakers.
Changpeng Zhao, the CEO of Binance, and Sam Bankman-Fried, a former competitor in the industry, made headlines this week due to accusations made against them and their cryptocurrency exchange, including breaking US anti-money laundering laws.
Binance Going Down
The largest cryptocurrency exchange in the world, Binance, was charged on Monday by US commodities regulators who claim the company broke the rules and taught US customers how to get around compliance checks.
Zhao gave a guilty plea on Tuesday and resigned as CEO. The former CEO will pay $50 million of the approximately $4.3 billion in fines that Binance is expected to pay. A portion of that will be used to resolve complaints filed by the Commodities Futures Trading Commission regarding selling unregistered cryptocurrency derivatives to US customers.
It can be recalled that prosecutors were investigating whether Binance permitted traders from sanctioned countries, such as Russia and Iran, to transact with American counterparties, as well as the exchange's money laundering prevention protocols.
The biggest cryptocurrency exchange by trading volume, Binance, has been under fire from regulators and law enforcement for several months as they looked more closely at the exchange's operations. According to Reuters, the deal allegedly handled over $10 billion in illicit payments last year; Binance refutes this claim.
"Binance grew at an extremely fast pace globally, in a new and evolving industry that was in the early stages of regulation, and Binance made misguided decisions along the way. Today, Binance takes responsibility for this past chapter," the post said.
CFTC In Pursuit
"There are no pirate ships in US markets," according to a statement issued by Commodity Futures Trading Commission (CFTC) Commissioner Christy Goldsmith Romero, and "access to US customers is a privilege, not a right."
The CFTC intends to keep up its vigorous pursuit of cryptocurrency exchanges that break trade regulations, which underscore the importance of adhering to financial regulations that are crucial aspects in the cryptocurrency space to prevent illicit activities and protect consumers.
The commissioner stated that using VPNs or taking any other action that might get around KYC regulations-such as pop-up questions that only require users to confirm that they aren't based in the US-will not be tolerated.
CFTC Commissioner Caroline D. Pham stated in a different statement that the agency's jurisdiction is unbounded. "It should be crystal clear that the CFTC will not stop in its pursuit of non-U.S. entities," Pham stated.
The prompt action occurs amidin the midst of a protracted legal proceeding against SBF, the founder of FTX, who entered a not-guilty plea to seven felony counts, including conspiracy to commit money laundering. He is still being held at the Metropolitan Detention Center in New York, pending his sentence. He might spend as much as 110 years behind bars.
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