Binance reportedly under CFTC investigation over US-based trading activity

The U.S. Commodity Futures Trading Commission is reportedly investigating possible transactions by U.S. customers on the world’s largest cryptocurrency exchange by trading volume.

Binance Holdings Ltd. is under investigation by a regulator over possible derivatives trading by U.S. customers, Bloomberg reported Friday, based on information from an anonymous source.

The exchange has not yet been charged with misconduct, but regulators are now reportedly trying to determine whether crypto-currency derivatives were bought and sold by U.S. citizens on the Binance platform.

A Binance spokesperson told Cointelegraph: In general, we do not comment on communications to regulators. We can say that we work with regulators around the world and take our compliance obligations very seriously.

Cryptocurrency derivatives trading reached new heights in early 2021, with Binance itself acting as a $59 billion derivatives exchange at the time of publication, more than double its closest competitor, Huobi Global.

Singapore-based crypto-derivatives exchange Bibit was recently forced to shut down its UK operations due to the Financial Conduct Authority’s ban on retail derivatives trading.

Binance reportedly blocks users from US IP addresses to prevent them from connecting to the site, but a controversial October 2020 Forbes article claimed that founder and CEO Changpeng Zhao regularly encouraged users to use a VPN.

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