By Nathan Ferguson
Binance, the top crypto exchange, has strongly condemned the United States Commodity Futures Trading Commission’s (CFTC)overstretching jurisdiction. In the latest filing of the prominent crypto platform, it has stated that the US law is implemented locally but it is not applicable globally. It added in the filing that Congress has not provided the CFTC with the authority to govern worldwide derivatives.
Binance’s Latest Court Filing Responds to Allegations that the CFTC Raised
In addition to this, Binance disclosed that the agency was attempting to go beyond its jurisdiction. The CFTC’s reported target was to regulate a platform that has pursued to circumventbusiness in the US in documentation. The crypto exchange disclosed that the agency was supposedly utilizing “broad arguments.”
As per Binance, the purpose of the agency was toimplement a strict grip on the derivatives dealing with crypto operations around the world.Apart from that, the crypto exchange requested the court to focus on the regulator’s “incendiary language” in the lawsuit. The respective lawsuit is against Binance as well as its chief executive officer Changpeng Zhao. The crypto exchange filed its new submission in a court based in Illinois on October 23.
The filing attempts to answer the lawsuit filing that the CFTC filed back in the previous month.The regulatory agency’s filing claimed that the Binance CEO had deliberately aimed at the US market. The filing argued that the commodities law of the United States anyway openlycontrolled foreign conduct.Moreover, the filing also made a further damaging assertion.
The Regulator Says Binance Operated as a Haven for Malicious People
Zhao and Binance’salleged obsession with secrecy as well as denial to abide by the regulatory needs havebeen detrimental. The filing added that this turned Binance into a haven for the consumers of the dark net. As a result, the filing asserted that terrorists and criminals who intend to transact their assets around the world were facilitated.
Nonetheless, the CFTC was just repeating the allegation that the agency had made formerly.It initially indicted Binance back in March this year. It had accused the exchange of deliberately providing unregistered cryptocurrency derivatives-related products in the United States, violating federal law. That was the time when the regulatory agency had additionally discussed Samuel Lim.
He, the compliance officer of Binance from 2018 to 2022, was allegedly in knowledge of the transactions that Hamas executed. According to the agency said that it knew that the exchange facilitated the respective transactions back in 2019’s February.Following the latest terror attack, the crypto exchange started cooperating with the authorities in Israel. In this endeavor, Binance tried to halt multiple accounts.
Trading Volume of Derivatives Reaches Its Former Level
The respective accounts were allegedly associated with Hamas. Back in May last year, the authorities in Israel had additionally taken measures against almost 190 cryptocurrency accounts on Binance. Several of them allegedly belonged to Hamas.
Nevertheless, the crypto exchange’s trading volume dealing with the derivatives products is still resilient. Despite the CFTC’s latest action, this strong position points toward the crypto exchange’s steady pace.
Recently, the crypto intelligence platform highlighted the respective phenomenon. The report disclosed that the trading volume of Binance for the perpetual futuresdenotednearly45% of the average volume. This was witnessed in the months before the lawsuit’s submission back in March. Although it slid down following the action of the CFTC, the operation has returned to its former level.
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