Binance faces aggressive CFTC action: “Access to US customers is a privilege, not a right.”

Key Points:

• As part of Binance faces aggressive CFTC action, Binance will pay over $4.3 billion in fines, with $50 million to be paid by Zhao himself.
• The Commodity Futures Trading Commission (CFTC) has said it will continue aggressively pursuing crypto exchanges that violate trade laws.

Binance faces aggressive CFTC action when the CFTC Commissioner says, “Access to US customers is a privilege, not a right.”

Binance CEO Pleads Guilty and Agrees to Pay $4.3 Billion in Fines

The last couple of years have been tough for the crypto industry and its leading figures. And it’s not likely there will be relief for the sector anytime soon. At least, that’s what policymakers are signaling. This week, Binance chief Changpeng Zhao joined his former industry rival Sam Bankman-Fried in making headlines for charges against him and his crypto exchange, which included breaching US anti-money-laundering laws.

On Tuesday, Zhao pleaded guilty and left his role as CEO. Binance is set to pay over $4.3 billion in fines, $50 million of which will be paid by the former CEO himself. As part of Binance faces aggressive CFTC action, the CFTC levied a $4.3 billion fine, a portion of which will settle claims for allowing US customers to trade unregistered crypto derivatives.

Binance faces aggressive CFTC action: There Are No Pirate Ships in US Markets

A statement made by CFTC Commissioner Christy Goldsmith Romero read: “There are no pirate ships in US markets” and that “access to US customers is a privilege, not a right.” Goldsmith added that the CFTC plans to continue its aggressive pursuit of crypto exchanges that violate trade laws. The commissioner noted that there will be no tolerance for using VPNs, or any other actions that could circumvent KYC rules, including pop-up questions that merely ask users to attest that they aren’t based in the US.

In a separate statement, CFTC Commissioner Caroline D. Pham said the CFTC’s reach has no border. “It should be crystal clear that the CFTC will not stop in its pursuit of non-U.S. entities,” Pham said. The swift action comes amidst a prolonged case set against FTX-founder SBF, who pleaded not guilty and was charged with seven felony counts, including conspiracy to commit money laundering.

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