https://sputnikglobe.com/20231123/us-crypto-crackdown-binance-chief-executive-departs-after-pleading-guilty-1115158633.html
US Crypto Crackdown: Binance Chief Executive Departs After Pleading Guilty
US Crypto Crackdown: Binance Chief Executive Departs After Pleading Guilty
Sputnik International
The US federal agencies - the SEC, DOJ, the Treasury Department - are intensifying their efforts against illegal cryptocurrency activities. However, an ensuing debate about 'regulatory clarity,' calls for new regulations to distinguish between legitimate and illicit crypto assets.
2023-11-23T12:34+0000
2023-11-23T12:34+0000
2023-11-23T12:34+0000
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On Tuesday, Changpeng Zhao resigned as chief executive of Binance - the largest global cryptocurrency exchange. His departure followed his pleading guilty of failing to implement a robust system against money laundering. However, such negligence may have permitted malicious entities to transfer funds through the platform.The American government has recently escalated its actions against criminal conduct in the cryptocurrency market, which has an estimated value of $1.4 trillion. This development is notable, especially after the conviction of Sam Bankman-Fried, FTX crypto exchange's former chief executive.The two erstwhile heads of crypto companies were arrowheads in the industry. However, their activities open up another vista of sinister happenings in the crypto world. This makes it crucial for ethical players to persuade skeptics that these are isolated cases and not representative of the industry.The Broader Impact on the Crypto Industry and Market ResponsesOn Tuesday, cryptocurrency markets experienced a downturn in the wake of investor responses to the latest regulatory developments in Washington, DC.By Wednesday, the cryptocurrency market had rallied. This turnaround saw notable fluctuations in Bitcoin and Ethereum, highlighting the market's responsiveness to regulatory changes. Brian Armstrong of Coinbase seized the chance to distinguish their business practices from those under investigation, highlighting their commitment to compliance and ethical practices.After the US Department of Justice's announcement that it was bringing charges against Zhao, having investigated Binance, the Binance coin fell by 6 percent initially. However, by Wednesday morning, its price had increased by 3.5 percent.The broader crackdown by federal authorities also affected other cryptocurrencies and firms such as Kraken and Tether on Tuesday, with Bitcoin dropping by $420 (1.1 percent) to $37,071 and Ethereum declining by $40 (2 percent) to $1,997. Bitcoin and Ethereum rebounded by Wednesday, with increases of 2.4 percent and 5 percent, respectively.Feds Crack Down on Crypto Assets and Binance's Future in the USThis week, the US Securities and Exchange Commission (SEC) sued Kraken, a crypto exchange, for allegedly operating as an unregistered securities exchange and mixing customer assets with the company's holdings. This lawsuit isn't the first against Kraken; the SEC has filed several lawsuits against various crypto companies, including Bittrex and Coinbase, this year. The SEC's ongoing litigation against Binance for purported violations of investor-protection law highlights the agency's continued aggressive stance. Despite some adverse rulings, the SEC is expected to persist in its rigorous legal action against crypto firms.Binance, having reached an agreement with the government, is ending its operations in the US. However, its affiliate, Binance.US, which was set up to conform to US legal requirements, will still operate, indicating a strategic adjustment rather than a full retreat from the American market.US Government's Stance on Cryptocurrency RegulationGovernment entities such as the SEC, Justice Department, and Treasury Department have adopted a stringent policy towards illegal cryptocurrency activities. This unified approach is reflected in the present legal actions against chief executives of prominent crypto exchanges and other cryptocurrency companies.Demand for New Crypto Regulations in the US Persists US authorities possess comprehensive regulations to tackle financial offenses, including those that make money laundering and bank fraud illegal. The ongoing debate about "regulatory clarity" in cryptocurrency focuses on new regulations to differentiate legitimate crypto products from shadowy criminal activity. This discussion also encompasses the potential avenues for implementing these regulations, including agency rulemaking or Congress legislative actions.The timeline and method for enacting extensive cryptocurrency regulation remain uncertain. It could happen through regulatory decisions made by agencies such as the SEC or CFTC, although these could face court challenges. Alternatively, Congress might take the lead in this process.
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US Crypto Crackdown: Binance Chief Executive Departs After Pleading Guilty
The US federal agencies - the SEC, DoJ, the Treasury Department - are intensifying their efforts against illegal cryptocurrency activities. However, the subsequent debate about "regulatory clarity", calls for new regulations to distinguish between legitimate and illicit crypto assets.
On Tuesday, Changpeng Zhao resigned as chief executive of Binance - the largest global cryptocurrency exchange. His departure followed his pleading guilty of failing to implement a robust system against money laundering. However, such negligence may have permitted malicious entities to transfer funds through the platform.
The American government has recently escalated its actions against criminal conduct in the cryptocurrency market, which has an estimated value of $1.4 trillion. This development is notable, especially after the
conviction of Sam Bankman-Fried, FTX crypto exchange's former chief executive.
The two erstwhile heads of crypto companies were arrowheads in the industry. However, their activities open up another vista of sinister happenings in the crypto world. This makes it crucial for ethical players to persuade skeptics that these are isolated cases and not representative of the industry.
The Broader Impact on the Crypto Industry and Market Responses
On Tuesday, cryptocurrency markets experienced a downturn in the wake of investor responses to the latest regulatory developments in Washington, DC.
By Wednesday, the cryptocurrency market had rallied. This turnaround saw notable fluctuations in Bitcoin and Ethereum, highlighting the market's responsiveness to regulatory changes. Brian Armstrong of Coinbase seized the chance to distinguish their business practices from those under investigation, highlighting their commitment to compliance and ethical practices.
After the
US Department of Justice's announcement that it was bringing charges against Zhao, having investigated Binance, the Binance coin fell by 6 percent initially. However, by Wednesday morning, its price had increased by 3.5 percent.
The
broader crackdown by federal authorities also affected other cryptocurrencies and firms such as Kraken and Tether on Tuesday, with Bitcoin dropping by $420 (1.1 percent) to $37,071 and Ethereum declining by $40 (2 percent) to $1,997. Bitcoin and Ethereum rebounded by Wednesday, with increases of 2.4 percent and 5 percent, respectively.
Feds Crack Down on Crypto Assets and Binance's Future in the US
This week, the
US Securities and Exchange Commission (SEC) sued
Kraken, a crypto exchange, for allegedly operating as an unregistered securities exchange and mixing customer assets with the company's holdings. This lawsuit isn't the first against Kraken;
the SEC has filed several lawsuits against various crypto companies, including
Bittrex and
Coinbase, this year. The SEC's ongoing litigation against Binance for purported violations of investor-protection law highlights the agency's continued aggressive stance. Despite some adverse rulings, the SEC is expected to persist in its rigorous legal action against crypto firms.
21 November 2023, 18:43 GMT
Binance, having reached an agreement with the government, is ending its operations in the US. However, its affiliate, Binance.US, which was set up to conform to US legal requirements, will still operate, indicating a strategic adjustment rather than a full retreat from the American market.
US Government's Stance on Cryptocurrency Regulation
Government entities such as the SEC, Justice Department, and Treasury Department have adopted a stringent policy towards
illegal cryptocurrency activities. This unified approach is reflected in the present legal actions against chief executives of prominent crypto exchanges and other cryptocurrency companies.
“In just the past month, the Justice Department has successfully prosecuted the chief executives of two of the world’s largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: Using new technology to break the law does not make you a disrupter. It makes you a criminal,” Attorney General Merrick Garland told the press.
Demand for New Crypto Regulations in the US Persists
US authorities possess comprehensive regulations to tackle financial offenses, including those that make money laundering and bank fraud illegal. The ongoing debate about "regulatory clarity" in cryptocurrency focuses on new regulations to differentiate legitimate crypto products from shadowy criminal activity. This discussion also encompasses the potential avenues for implementing these regulations, including agency rulemaking or Congress legislative actions.
The timeline and method for enacting extensive cryptocurrency regulation remain uncertain. It could happen through regulatory decisions made by agencies such as the SEC or CFTC, although these could face court challenges. Alternatively, Congress might take the lead in this process.
“I’ve advocated filling in some of these gaps, specifically around commodity tokens, and I do think if we’re able to do that - obviously with Congress’s help - we can prevent these actions from happening and not have to be here after the fact,” CFTC chairman Rostin Behnam told news sources.
