The U.S Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, alleging that the exchange has been unlawfully offering commodities trading services to U.S. customers since 2019. The CFTC claims that Binance has violated the Commodity Exchange Act and CFTC regulations by using regulatory arbitrage strategies to circumvent U.S. law and restrictions, instructing its U.S. employees and customers on how to bypass the exchange’s compliance controls. The CFTC is seeking disgorgement, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further commodities law violations. Interestingly, the regulator explicitly named BTC, ETH, and LTC as the commodities that Binance was providing trading services for. Binance, which does not have a formal headquarters, has faced increasing regulatory scrutiny globally in recent months, with authorities in the U.K, Japan, and Germany among those targeting the exchange.
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