An extensive investigation into the activities of cryptocurrency exchange giant Binance has revealed signs that the U.S. Commodity Futures Trading Commission (CFTC) is preparing to target other platforms found to be violating trading rules.
Despite the severe and unexpected disruption, the cryptocurrency sector has skillfully managed to mitigate its impact and is currently seeing encouraging signs of a price rebound.
CFTC Strengthens Cryptocurrency Supervision Efforts
Binance, a global leader in cryptocurrency exchange volume, recently reached a settlement with the U.S. Department of Justice, pleading not guilty and imposing a hefty fine of $4.3 billion. At the same time, in the same legal proceedings, former Binance CEO Changpeng Zhao resigned as CEO after admitting to charges including violating anti-money laundering laws.
With these incredible developments, predictions suggest that the coming years could be incredibly challenging for the cryptocurrency industry.
In the aftermath, CFTC Commissioner Christy Goldsmith Romero emphasized zero tolerance for any attempts to circumvent Know Your Customer (KYC) regulations. “There are no bad ships in the U.S. market,” Romero emphasized, emphasizing that access to U.S. customers is a privilege, not a right.
As Commissioner Caroline D. Pham asserted, “It is clear that the CFTC will continue to pursue non-U.S. entities.” Such a strong crackdown would have wider implications for both domestic and foreign entities.
The U.S. securities watchdog, the Securities and Exchange Commission (SEC), is continuing its investigative efforts against Ripple, Kraken, Binance, and Coinbase as the CFTC appears to be expanding its actions against cryptocurrency projects.
The revival of the cryptocurrency market
Meanwhile, the cryptocurrency market is experiencing a significant recovery today, just a few days after suffering a sharp decline due to disturbing news about Binance. Most cryptocurrencies, including Binance’s BNB coin, are showing positive price momentum.
Bitcoin, the largest and largest digital asset, plummeted to a low of $35.9K as Binance’s $4 billion fine and guilty plea were revealed. However, at the time of this report, BTC is trading at a solid valuation of $37.5K. A similar trend is visible in Ethereum and the overall cryptocurrency market.
Despite significant unexpected events causing disruption in the markets, most crypto assets have now reached levels last seen in May 2022, according to the report.
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