Binance continues to face scrutiny from regulators all over the world, with the main topic being that it is not fully authorized to function in a lot of jurisdictions. Most recently, there have also been rumors of the centralized exchange taking part in insider trading.
As such, the United States CFTC (Commodities Futures Trading Commission) recently expanded upon its probe that had been sent to investigate Binance U.S, with the main goal being to ascertain as to whether both insider trading as well as market manipulation were occurring.
Binance in deep water
The regulatory authorities from the United States are adamant in finding out more about how Binance actually operates and whether any kind of misconduct is taking place or not. This adds to the exchange’s pre-existing troubles wherein it has had to deal with countless governmental and regulatory bodies regarding its reported illegal status as a crypto exchange since it apparently does not have any kind of license to function in most of the world’s major jurisdictions.
According to the latest reports, the aforementioned probe had been made confidentially. With it, the CFTC will eventually know if the exchange is legitimate and genuine in its activities or whether its employees are participating in fraudulent activities. In its defense, Binance representatives have stated there is absolutely no place for any kind of misconduct as far as the exchange and its employees are concerned and that insider trading is not allowed. The representatives added that the exchange follows a very strict code when it comes to misconduct and that safeguarding the customers’ interests as well as Binance’s reputation remains the top priority.
Regulators are unrelenting
One of the main developments in the crypto industry that continues to dominate the headlines is that of Changpeng Zhao and his desire to work with the regulators following the consistent accusations made towards Binance. The exchange has constantly received warnings from regulators based all over the world, including the United Kingdom, Africa, and several parts of Europe. Most of these warnings centered around the lack of an official license being granted to the exchange.
Most recently, it was Singapore that had taken umbrage with Binance, which had since caused the centralized exchange to cease offering cryptocurrency-fiat pairs, which were based on the country’s national currency. South African regulators have also been cracking down on Binance as of late, so it is no wonder why Changpeng Zhao would much rather work alongside the regulators going forward.