Binance Is Hiding U.S. Crypto Trading Activity, Regulator Says – The New York Times

The C.F.T.C., in its complaint, also said Binance had sought to expand its business by soliciting U.S. customers without ever being “registered with the C.F.T.C. in any capacity.” The company “has disregarded federal laws essential to the integrity and vitality of the U.S. financial markets,” the complaint said.

The filing noted that Mr. Zhao had avoided designating a corporate headquarters for Binance and cited an internal presentation by Mr. Zhao explaining that his refusal to say where Binance was based helped it avoid scrutiny from any particular country’s legal authorities.

The lawsuit appears to be an attempt by the C.F.T.C. to assert its authority over the crypto trading world while in something of a competition with the Securities and Exchange Commission. The S.E.C. has particularly been active in bringing enforcement actions against crypto firms for not registering digital assets as investment products before offering them to sale to the public.

Source: Binance Is Hiding U.S. Crypto Trading Activity, Regulator Says – The New York Times