The United States has yet to take strong steps regarding cryptocurrency regulations, but lawsuits are ongoing. Existing laws are sufficient for some crypto cases. For example, existing financial laws are sufficient for issues such as money laundering, KYC violations, and providing unregistered services. Just a few minutes ago, the CFTC announcement revealed a new detail about the Binance case.
Latest News on Binance
CFTC announced that former Binance Compliance Director Samuel Lim will pay a fine of $1.5 million due to the complaint. The Commodity Futures Trading Commission today announced that Samuel Lim has agreed to accept the penalty if approved by the US Northern District Court of Illinois. Lim would be included in the settlement agreement, and we heard about it days ago, so this latest development is not surprising. The former Binance executive was sued for the following crimes:
- Violation of the Commodity Exchange Act (CEA)
- Intentionally aiding and abetting numerous CEA violations by Binance exchange
CFTC’s Acting Director, Ian McGinley, said:
“We are working to maintain integrity in the markets we regulate, including cryptocurrency markets. Chief compliance officers should take note of today’s proposed order: If your compliance program is merely ‘window dressing’ and deliberately ineffective, CFTC will hold you accountable for facilitating illegal conduct.”
CFTC’s Division of Enforcement Deputy Director and Chief Counsel, Gretchen Lowe, said:
“CFTC’s action and proposed orders demonstrate that these are all smoke and mirrors, going beyond the company’s internal controls and claims of not having customers in the US. Instead of having a sound compliance system, we see someone producing ‘band-aid solutions’ and ‘creative tools’ to intentionally evade US derivative laws, all while CEO and CCO have a solid compliance system.”
