The CFTC is looking into Binance's US customers trading derivatives,

[Cordillerabit]

According to Bloomberg, the Commodity Futures Trading Commission is investigating Binance to see whether U.S. citizens exchanged derivatives on the cryptocurrency exchange in breach of US laws.

According to the paper, which quoted people familiar with the situation, Binance has not been accused of any wrongdoing, and the CFTC does not pursue an enforcement action. Bloomberg also didn't specify how long this supposed trading took place.

Requests for comment from Binance and the CFTC were not immediately returned. However, the exchange's founder and CEO, Changpeng Zhao, seemed to term the study "FUD" in a tweet posted after Bloomberg's report was released, using an acronym for "fear, confusion, and doubt" that is often used in the crypto industry to refer to unexpected news.

The news comes only one day after Binance announced the hiring of Max Baucus, a former US senator and ambassador to China, as a policy advisor to support the exchange negotiate with US regulators. Baucus is currently self-employed as a consultant.

On paper, Binance does not represent US consumers directly, instead relying on a San Francisco-based company known as Binance.US. Despite this, the parent exchange has announced at least twice in the last two years that all US customers will be excluded from its site.

The investigation is yet another indication that regulators are attempting to direct American investors through controlled networks.

 The CFTC controls derivatives trading in the United States. Last year, the CFTC filed an enforcement action against BitMEX, alleging that it permitted U.S. customers to trade derivatives goods. The investigation into that case, which is still being investigated by the Justice Department, is still underway.

Source: Bityard