Binance facing US ban as it becomes the latest cryptocurrency firm to be whacked by regulators
Under fire: Binance co-founder Changpeng Zhao
Binance could face a ban in the US as it becomes the latest cryptocurrency firm to be whacked by regulators.
The Commodity Futures Trading Commission (CFTC) sued Binance, as well as its co-founder Changpeng Zhao and its former chief compliance officer Samuel Lim, for allegedly breaking trading laws.
‘Binance’s compliance program has been ineffective and, at Zhao’s direction, Binance has instructed its employees and customers to circumvent compliance controls in order to maximise corporate profits,’ the CFTC said, adding that Lim is charged with ‘willfully aiding and abetting Binance’s violations’.
The accusations pose an existential threat for the company, which could face a ban in the US or curbs on future user registrations because of these alleged failings. Binance was not available to comment last night.