on the crypto
The US Commodity Futures Trading Commission (CFTC) has initiated an investigation into allegations of insider trading occurring within the cryptocurrency exchange, Binance Holdings Ltd.
According to a report published in Bloomberg, investigators revealed that these latest allegations involve whether "Binance or its staff" profited by using undisclosed inside information to illegally obtain profits through market manipulation.
Binance manipulates the market
Binance has issued the official response to these allegations, reiterating that "At Binance we have a zero tolerance policy for insider trading and a strict code of ethics relating to any type of behavior that could negatively impact our customers or the industry" .
This investigation represents an expansion of an ongoing investigation into Binance by government authorities in the United States, with the country's Department of Justice (DoJ) and the country's Internal Revenue Service (IRS) currently investigating money laundering complaints. of money and tax fraud occurring out of control by staff members of the largest cryptocurrency exchange in the world. It should be noted that the US authorities have also made it clear that Binance has not been charged with any wrongdoing and that the conclusions of these investigations have yet to be confirmed.
These allegations fit into a broader regulatory scrutiny narrative both in the U.S. and around the world between government authorities and Binance (NASDAQ shares - Binance), which is the most popular exchange in the world.
Headache with regulators around the world
Binance has faced regulatory scrutiny around the world, with 2021 being a particularly busy year for the company in this regard. Just a couple of weeks ago, the company released a statement in response to a warning issued by the South African Revenue Service (SARS) through its "Binance Africa" division. This warning was issued to investors in the country, citing the lack of official authorization to offer brokerage services or financial advice.
The cryptocurrency exchange has also faced public relations problems this year due to negative warnings and other negative sentiments conveyed by regulators in countries such as Singapore, UK, Brazil, Lithuania, Hong Kong and Italy. They also removed trading pairs between cryptocurrencies and specific fiat currencies this year, including the Singapore dollar, Korean Won, Australian dollar, euro, and British pound.
Is Binance Moving in the Right Direction?
Despite these warnings and ongoing investigations, there have not yet been any official rulings against Binance regarding fraud, insider trading or money laundering. Nor was the company subsequently convicted of any of the warnings issued by the US or elsewhere.
Binance has also made changes to its internal processes and management staff following the difficulties and bad relations it faced with international financial authorities in 2021. Additionally, it has been reported that the company's CEO is working with regulators to achieve the goal of acquiring licenses worldwide.
Additionally, the company is preparing for an initial public offering within the next three years. In other Binance news, the company also named a new president for its Binance.US branch earlier this month.
