Cryptocurrency exchange to BinanceCommodity Futures Trading Commission (CFTC) Users’ withdrawals have increased after he filed a lawsuit for allegedly violating federal law and failing to register in the US.
Binance Sees Increase in Withdrawals After CFTC Sues The Exchange
Since the filing was announced, $169 million was withdrawn from the exchange against just $46 million in deposits, with a net outflow of $123 million.
Crypto data provider Nansen indicates that the exchange has $63.7 billion worth of cryptocurrencies. The data is based on the list of wallets that the exchange has made public to demonstrate transparency into its assets.
The lawsuit alleged that Binance, the world’s largest cryptocurrency exchange, is not serving US customers and is trying to increase its presence in the region despite public claims that it is not open to US customers.
Exchange managers allegedly replaced data referring to US customers with the word “UNKWN,” an abbreviation for unknown.
Binance has stated that it is committed to complying with all applicable regulations, and the exchange has taken steps to improve compliance efforts, such as launching a new Know Your Customer (KYC) program and partnering with blockchain analytics firm Chainalysis to improve its anti-money laundering (AML) capabilities.
Overall, the CFTC’s lawsuit against the stock market is a reminder of how important regulatory compliance is in the cryptocurrency industry.
As the industry continues to evolve and mature, more exchanges and projects are likely to face regulatory scrutiny, and those who fail to comply may face serious consequences, including legal action and reputational damage.
*Not investment advice.
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