The U.S. regulators are reviewing the world’s largest cryptocurrency exchange, Binance, for potential fraud charges. The U.S. The Department of Justice (DoJ) has been looking into Binance’s alleged violation of U.S sanctions on Russia and offering of unregistered securities.
Binance has received attention from the Commodity Futures Trading Commission (CFTC) for purported violations of trading and derivatives laws.
However, regulators must consider the potential harm to consumers and the broader industry that could result from such actions, including the risk of a bank run similar to the FTX collapse in November 2022, which sparked a liquidity crisis, bankruptcy, and significant losses for consumers.
Therefore, U.S. officials are exploring alternative measures to criminal charges, such as imposing fines or negotiating deferred or non-prosecution agreements with Binance, to mitigate potential harm. Meanwhile, Binance has made a positive move by re-entering the Japanese market through its subsidiary, SAKURA Exchange Bitcoin.
The exchange will introduce spot trading, earning services, and support for 32 tokens, including Binance Coin (BNB).
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